August 10, 2018 / 12:03 PM / 3 months ago

SOFTS-Raw sugar slips on rains in Brazil, EU; arabica coffee dips

LONDON, Aug 10 (Reuters) - Raw sugar futures on ICE fell on Friday, pressured by crop-friendly rains and a weakening in the Brazilian real currency, while arabica coffee also dipped as fund selling continued.

SUGAR

* October raw sugar was down 0.18 cent, or 1.7 percent, at 10.66 cents per lb by 1121 GMT.

* Dealers noted the market was weighed by a more bearish technical picture, after the prior session’s attempted rally over key resistance levels faltered before the close.

* Prices have also been under pressure from a weakening in the Brazilian real currency, which encourages producer selling by improving local returns.

* Participants also pointed to easing worries about a prolonged bout of dry weather across the European Union and in top grower Brazil, after crop-friendly rains recently.

* More precipitation is forecast for Brazil’s Centre-South cane region in the coming days, although it may have limited impact on the current crop.

* “The rains forecast...aren’t enough to cause harvest stoppages, but should provide a little bit of relief (albeit marginal) to the crop,” Marex Spectron said in an update.

* October white sugar fell $3.70, or 1.2 percent, at $318.00 a tonne.

* The premium for October white sugar over its raws equivalent remained strong at more than $82 a tonne.

COFFEE

* September arabica coffee fell 0.85 cent, or 0.8 percent, to $1.0680 per lb.

* Prices continued to be pressured by index funds rolling short positions out of the September contract and into the December position.

* The weaker Brazilian real was also firmly in focus, as it inspired more producer hedging, dealers said.

* September robusta coffee was unchanged at $1,671 a tonne.

* Brazil exported 2.03 million 60-kg bags of green coffee in July compared to 1.59 million bags a year ago, despite some difficulties at ports faced by Brazilian exporters, Cecafé said on Thursday.

COCOA

* December New York cocoa was down $5, or 0.2 percent, at $2,124 a tonne.

* Dealers noted trade was subdued as participants sought fresh news on weather and crop development in top grower Ivory Coast.

* December London cocoa rose 5 pounds, or 0.3 percent, to 1,609 pounds a tonne, boosted by the weaker British pound.

* A number of small trade houses are beefing up their cocoa teams, as a wave of high-profile exits left the sector highly concentrated, presenting more physical trading opportunities. (Reporting by Ana Ionova)

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