August 8, 2018 / 12:08 PM / in 3 months

SOFTS-Arabica coffee falls as selling resumes; sugar also slips

LONDON, Aug 8 (Reuters) - Arabica coffee futures on ICE fell on Wednesday, pressured by fresh selling by producers and speculators, while sugar prices also slipped as chart signals turned more bearish.

COFFEE

* September arabica coffee was down 0.75 cent, or 0.7 percent, to $1.0830 per lb at 1150 GMT, after dipping to a session low of $1.0750.

* Dealers noted chart signals had weakened, after prices attempted to rally in recent sessions but found little buying support.

* “Technically, the market seems to be turning,” one European dealer said.

* Traders also pointed to selling pressure by Colombian and Brazilian producers, with the latter being encouraged in recent days to hedge supplies by the weaker real currency.

* Arabica prices were also under increased pressure from funds rolling their short positions forward out of the September contract, dealers said.

* “This is day two of the index (fund) rolling in New York,” the dealer said. “So the volumes are going to be significant.”

* September robusta coffee fell $1, or 0.06 percent, to $1,667 a tonne.

* Indonesia’s 2018/19 coffee bean output is seen rising to 660,000 tonnes, the country’s Association of Coffee Exporters and Industries (AEKI) said on Wednesday.

SUGAR

* October raw sugar slipped 0.08 cent, or 0.7 percent, to 10.80 cents per lb.

* Dealers said the prior session’s decline, partly due to the weaker Brazilian real, weakened the technical structure and spurred more light selling on Wednesday.

* “The rally seems to have faltered for now,” Tobin Gorey of the Commonwealth Bank of Australia said in a market note. “Nonetheless, weather worries are accumulating in the background.”

* Participants were monitoring dry weather conditions across Europe for signs of the impact on the development of beet crops.

* Focus also remained on top grower Brazil, although recent rains have helped relieve a long dry spell in the key cane region, dealers said.

* Egypt has cancelled a tariff imposed last year on sugar exports, the ministry of trade and industry said, in a move that opens the door for exports to resume.

* October white sugar was down $2.60, or 0.8 percent, at $320.40 a tonne.

COCOA

* December New York cocoa fell $6, or 0.3 percent, to $2,134 a tonne.

* December London cocoa was up 3 pounds, or 0.2 percent, at 1,603 pounds a tonne.

* Cameroon expects cocoa bean grinding to more than double in the next two to three years to 130,000 tonnes due to incentives for investors, its trade minister said on Tuesday. (Reporting by Ana Ionova; Editing by Mark Potter)

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