Commodities

SOFTS-Raw sugar futures slip as crop outlook improves

Credit: REUTERS/KHALID AL-MOUSILY

Raw sugar futures on ICE dipped to a more than two-week low on Monday, weakened partly by improving crop outlooks in several key producing countries, while arabica coffee prices also fell.

LONDON, June 14 (Reuters) - Raw sugar futures on ICE dipped to a more than two-week low on Monday, weakened partly by improving crop outlooks in several key producing countries, while arabica coffee prices also fell.

SUGAR

* July raw sugar SBc1 fell by 0.33 cent, or 1.9%, to 17.21 cents per lb by 1032 GMT after slipping a low of 17.12 cents - the weakest since late May.

* Dealers said supplies appeared ample, boosted by the strong pace of production in Centre-South Brazil, while the prospects for 2021/22 season crops in key Asian producers India and Thailand were favourable.

* Commodity trader and supply chain services firm Czarnikow on Monday forecast a global surplus of 1.5 million tonnes in 2021/22, following a surplus of 2.7 million in 2020/21, driven by rising production.

* Rains in India have helped improve the production outlook.

* "Cane growing conditions remain promising (in India) with plenty of rain. It was India's second wettest May in over 100 years and the monsoon rains have arrived on time," Czarnikow said, adding Indian production should exceed 30 million tonnes in 2021/22 for the second consecutive season.

* Speculators have also been scaling back net long positions in both raw sugar and arabica coffee.

* August white sugar LSUc1 fell by $5.00, or 1.1%, to $446.30 a tonne.

COFFEE

* September arabica coffee KCc2 fell by 2.1 cents, or 1.3%, to $1.5750 per lb.

* Dealers noted there had been some rain in Brazil coffee areas and more was forecast during the next few days although dry conditions in the world's top producer remained a concern.

* Green coffee exports from Brazil, the world's largest producer, fell 20% in May from the same month a year ago to 2.34 million 60-kg bags, exporters association Cecafe said on Friday, citing logistic issues as one of the reasons for the reduction.

* September robusta coffee LRCc2 fell by $16, or 1.0%, to $1,603 a tonne.

COCOA

* September London cocoa LCCc2 rose by 5 pounds, or 0.3%, to 1,627 pounds a tonne.

* September New York cocoa CCc2 rose by $6, or 0.25%, to $2,408 a tonne.

(Reporting by Nigel Hunt Editing by Bernadette Baum)

((nigel.hunt@thomsonreuters.com; +44 20 7542 8421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net ))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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