June 28, 2018 / 11:27 AM / 4 months ago

SOFTS-Raw sugar recovers after plunge, NY cocoa touches 3-week low

LONDON, June 28 (Reuters) - Raw sugar prices on ICE rose on Thursday, recovering some ground after tumbling sharply in the prior session, while New York cocoa slipped to a three-week low in thin trade.

SUGAR

* October raw sugar was up 0.17 cent, or 1.4 percent, at 12.22 cents per lb by 1109 GMT.

* Prices tumbled sharply in the previous session, pressured by a slump in the Brazilian real currency, which encourages producer hedging.

* “Producers would be quick to take advantage of better domestic currency revenues – fleeting as that proves to be,” Commonwealth Bank of Australia analyst Tobin Gorey said in a market note.

* The weakness triggered a further wave of chart-inspired selling after prices fell below the 10-day and 50-day moving averages, dealers said.

* On Thursday, light speculative short-covering and profit-taking helped steady the market, improving the technical structure, they said.

* Market focus was on the July raw sugar expiry on Friday, with dealers expecting mostly Brazilian supplies to be delivered against the contract.

* August white sugar rose $5.90, or 1.7 percent, to $348.30 a tonne.

* The August/July whites premium - which reflects refining margins - rose above $80 per tonne on Thursday, with dealers noting it was supported by expectations that Indian and European Union producers would not deliver at current prices.

COCOA

* September New York cocoa fell $16 or 0.7 percent, at $2,364 a tonne, after touching $2,355, a low since June 8.

* This extended losses from the prior session, when prices tumbled sharply as speculators continued to unwind long positions in the market, dealers said.

* September London cocoa eased 3 pounds, or 0.2 percent, to 1,754 pounds a tonne, with focus on a July London options expiry on Friday.

* The July contract’s premium over the September position LCCN8-U8 widened to $80 pounds on Thursday. The spread was trading at a discount of $78 pounds earlier this month.

COFFEE

* September robusta coffee fell $10, or 0.6 percent, to $1,695 a tonne.

* September arabica coffee also slipped 0.5 cents, or 0.5 percent, to $1.1690 per lb.

* Vietnam’s main coffee growing province of Daklak has had continuous rain recently, with traders noting the precipitation level is favourable for the upcoming crop.

* However, physical demand for robusta in the top grower was weak, with beans trading at a $60-$70 per tonne discount to London’s September robusta coffee contract, traders said. (Reporting by Ana Ionova; editing by David Evans)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below