Commodities

SOFTS-Raw sugar prices weaken, NY cocoa climbs to 10-month peak

Credit: REUTERS/KHALID AL-MOUSILY

Raw sugar futures on ICE were lower on Monday, driven down by liquidation of funds' long positions, while New York cocoa climbed to a 10-month high as heavy rains in top producer Ivory Coast heightened concerns about black pod disease.

Adds comment, updates prices

LONDON, Oct 4 (Reuters) - Raw sugar futures on ICE were lower on Monday, driven down by liquidation of funds' long positions, while New York cocoa climbed to a 10-month high as heavy rains in top producer Ivory Coast heightened concerns about black pod disease.

SUGAR

* March raw sugar SBc1 was down 0.85% at 19.89 cents per lb by 1440 GMT.

* The market was pressured by signs that funds may be scaling back long positions, with risk appetite diminished by ongoing woes in China's property sector. MKTS/GLOB

* "The longer the market remains directionless, the greater the risk of a fund sell-off. But we think that the past two weeks have seen a momentous change – the apparent return of white sugar demand and the substantial raw sugar demand in September," broker Marex said in an note.

* Pakistan's Trading Corporation of Pakistan (TCP) has issued a new international tender to purchase 50,000 tonnes of white sugar, European traders said on Monday.

* December white sugar LSUc1 fell 0.3% to $509.30 a tonne.

COCOA

* December New York cocoa CCc1 rose 2.5% to $2,778 a tonne after hitting a 10-month high of $2,792.

* The market has been supported partly by heavy rainfall in top producer Ivory Coast, which increased the threat posed by fungal disease.

* Another week of heavy rains has triggered an outbreak of fungal black pod disease in some of Ivory Coast's cocoa-growing regions, farmers said on Monday.

* December London cocoa LCCc1 was 1.3% up at 1,907 pounds a tonne​.

COFFEE

* December arabica coffee KCc1 fell 0.2% to $2.0370 per lb after hitting a two-month high of $2.0555 on Friday.

* Dealers said the market could consolidate in the short term after its recent run-up, but the overall mood remained bullish, with disruptions to supply in the physical market increasing the appetite for exchange stocks.

* November robusta coffee LRCc1 was down 0.6% at $2,155 a tonne.

(Reporting by Nigel Hunt Editing by Jan Harvey and David Goodman )

((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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