SOFTS-Raw sugar slides after hitting 5-month peak; arabica also down
Recasts, includes closing prices and comments
NEW YORK/LONDON, July 29 (Reuters) - Raw sugar futures on ICE closed down on Thursday after hitting five-month highs earlier as investors priced in another forecast cold snap this week in top producer Brazil that will likely further damage the cane crop.
Arabica coffee futures, having already straddled near seven-year highs this week on damage from last week's frosts, fell for the third consecutive session as the market corrects.
* October raw sugar futures SBc1 settled down 0.31 cent, or 1.7%, at 18.30 cents per lb, having hit a five-month peak earlier of 18.81 cents.
* Dealers said although the frosts set to hit sugar areas in Brazil on Friday and Saturday would likely be less severe than last week's, the damage is cumulative and the crop is also already stressed from previous dry weather.
* The price bias is therefore to the upside, they said, even though there are signs sugar demand is weak and some speculators are moving to cash in recent gains.
* October white sugar LSUc1 fell $7.10, or 1.5%, to $451.40 a tonne.
* September arabica coffee KCc1closed down 3.95 cents, or 2.0%, at $1.965 per lb.
* Dealers said coffee areas in Brazil that might be affected by frosts later this week are the same areas already damaged by last week's freezing temperatures, leaving little more damage on the cards.
* They also said that some investors that entered when prices were already high might be exiting as the market failed to go higher.
* Last week's frost damage was severe. Trader Comexim said it expects the frosts took out 13% of the coffee crop in the Cerrado region, 12.5% of the crop in South Minas, 8.5% in São Paulo and 5.5% in Paraná.
* September robusta coffee LRCc1 fell $45, or 2.3%, to $1,885 a tonne, under pressure from the slide in arabica.
* Domestic coffee prices in Vietnam, the world's top robusta producer, edged up on Thursday amid limited end of season supplies. Exports are expected to drop.
* December London cocoa LCCc2settled down 4 pounds, or 0.2%, to 1,698 pounds per tonne, having hit the highest since mid-May on Wednesday.
* December New York cocoa CCc2closed up $13, or 0.5%, at $2,484 a tonne, having hit the highest since early June.
(Reporting by Marcelo Teixeira and Maytaal Angel Editing by Jonathan Oatis and Steve Orlofsky)
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