June 26, 2018 / 11:43 AM / 5 months ago

SOFTS-Robusta coffee climbs as buying picks up, NY cocoa slips

LONDON, June 26 (Reuters) - Robusta coffee futures rose on Tuesday, boosted by renewed buying interest coupled with a slowdown in producer selling from top grower Vietnam, while a stronger U.S. dollar weighed on New York cocoa.

COFFEE

* September robusta coffee was up $14, or 0.8 percent, at $1,690 a tonne by 1121 GMT, after falling in sizeable volume in the prior session.

* The spot July position gained $31 or 1.9 percent, to $1,709 on Tuesday.

* The spot contract’s premium over the September position narrowed sharply in the prior session, from a premium of roughly $23 earlier, boosting sentiment and spurring buying interest, dealers said.

* Prices were also partly supported by a slowdown in selling by producers in top grower Vietnam, they said.

* “The Vietnamese have slowed down a bit, with the market below $1,700,” one European dealer said.

* Dealers also said there was scope for short-covering support after speculators recently increased their bearish position in robusta.

* September arabica coffee rose 0.10 cents, or 0.1 percent, to $1.1730 per lb.

* Focus remained on ample global supplies, as harvesting of a record crop gets underway in top producer Brazil.

* “All the fundamentals are not positive to the market,” the dealer said. “There’s a surplus forecast and, in Brazil, there’s favourable weather. There’s nothing to really force the shorts to cover.”

SUGAR

* October raw sugar was up 0.02 cents, or 0.2 percent, at 12.34 cents per lb.

* Focus remained on dry weather in Brazil, although participants remained cautious about its potential ability to curb this season’s output and partly reduce a global glut.

* “A modest dry period ... still has the potential to raise, not lower, sugar production in season 2018,” Commonwealth Bank of Australia analyst Tobin Gorey said in a note.

* The market was awaiting fresh cane crush data from Brazil’s Unica, due out at 1300 GMT, for indications of the impact of a recent trucker strike and signs of how much cane mills are channelling to ethanol.

* August white sugar rose $2.00, or 0.6 percent, to $347.10 a tonne.

COCOA

* September New York cocoa fell $5, or 0.2 percent, to $2,475 a tonne.

* Prices were pressured by a recovery in the dollar, which climbed off one-week lows.

* The market remained in a recent range, as technically-inspired trade continued to dominate activity, dealers said.

* September London cocoa slipped 1 pound, or 0.06 percent, to 1,808 pounds a tonne. (Reporting by Ana Ionova Editing by Edmund Blair)

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