Commodities

SOFTS-Sugar prices fall on ample supplies; cocoa, coffee also down

Credit: REUTERS/PASCAL ROSSIGNOL

Sugar prices on ICE closed down on Friday due to signs of ample supplies, though the market remained within recent ranges. Cocoa and coffee prices also closed lower.

Updates with closing prices, adds comments

NEW YORK/LONDON, June 11 (Reuters) - Sugar prices on ICE closed down on Friday due to signs of ample supplies, though the market remained within recent ranges. Cocoa and coffee prices also closed lower.

SUGAR

* July raw sugar SBc1​​settled down 0.12 cent, or 0.7%, at 17.54 cents per lb.

* August white sugar LSUc1​settled down $3.40, or 0.7%, at $451.30 a tonne.

* Dealers said the widening discounts for front month versus second month raw and white sugar SB-1=R, LSU-1=R indicated nearby supplies remained plentiful, but added there was good buying from end-users at around 17.60, keeping prices range-bound.

* There was also talk of high shipping rates hurting physical demand, with some buyers willing to postpone deals and wait for freight rates to fall.

* Data showed sugar production in the key Center-South region of top producer Brazil totalled 2.62 million tonnes in the second half of May - above market expectations.

COFFEE

* July arabica coffee KCc1settled down 1.25 cent, or 0.8%, at $1.5745 per lb. The contract hit a 4-1/2-year high last week.

* Dealers said concerns remain about next year's crop in top arabica producer Brazil, after severe dryness damaged the current crop, but rains this week would likely improve crop prospects.

* Brazilian growers sold 40% of this year's crop by June 8, a much quicker selling pace than seen at this time in previous seasons, consultancy Safras & Mercado said on Friday.

* There are signs anti-government protests that disrupted exports like coffee in world No. 2 arabica producer Colombia are losing steam.

* July robusta coffee LRCc1settled up $7, or 0.4%, at $1,592 a tonne.

COCOA

* September New York cocoa CCc2 ​​settled down $31, or 1.3%, to $2,402 a tonne.

* World No. 2 cocoa producer Ghana's bean arrivals at ports reached 924,385 tonnes by May 27 since the start of the season on Oct. 1, up 25.3% from last season.

* Cocoa has sharply underperformed other soft commodities this year. Dealers said the market was struggling for direction and appeared range-bound for now.

* September London cocoa LCCc2 ​​was flat at 1,622 pounds per tonne​.

(Reporting by Marcelo Teixeira and Maytaal Angel; Editing by Pravin Char and Leslie Adler)

((marcelo.teixeira@tr.com; +1 332 220 8062; Reuters Messaging: marcelo.teixeira.thomsonreuters.com@reuters.net - https://twitter.com/tx_marcelo))

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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