SOFTS-Raw sugar prices slip, coffee and cocoa also lower

LONDON, April 24 (Reuters) - Raw sugar futures were lower on Friday as the focus remained on the extent to which mills in Brazil will raise production, while coffee and cocoa also weakened.


* May raw sugar was down 0.07 cent, or 0.7%, at 9.77 cents per lb at 1203 GMT. The front month fell to a low of 9.55 cents on Tuesday, its lowest since June 2008.

* Dealers said the prospect of increased production from Brazil as mills switch to using more cane rather than biofuel ethanol continued to weigh on the market.

* The weakness of Brazil’s currency has helped to increase the incentive to produce dollar-denominated sugar but the key factors has been a collapse in demand for the biofuel as lockdowns curb consumption of motor fuel.

* “We believe sugar... will remain weak in the coming months and could head lower should the economic outlook and market sentiment worsen,” Fitch Solutions said in a note.

* The market was awaiting the announcement by Brazil’s government of support measures for the sugarcane and ethanol sector.

* Sugar and ethanol company Cosan SA expects increased financial difficulties for some Brazilian companies in the sector as demand for the biofuel falls and prices for the sweetener hover around a 12-year low.

* August white sugar fell $2.50, or 0.8%, to $319.50 a tonne.


* July arabica coffee fell 2.15 cents, or 1.9%, to $1.1025 per lb.

* July robusta coffee was down $15, or 1.3%, at $1,135 a tonne.

* Nestle on Friday reported a 4.3% rise in organic sales growth for the first quarter, as consumers filled cupboards with Nescafe coffee to prepare for lockdowns caused by the coronavirus pandemic.


* July New York cocoa fell $30, or 1.3%, to $2,333 a tonne.

* July London cocoa was down 24 pounds, or 1.3%, 1,868 pounds a tonne. (Reporting by Nigel Hunt; editing by John Stonestreet)

Nuestros Estándares: Los principios Thomson Reuters.