July 5, 2018 / 11:44 AM / 4 months ago

SOFTS-Raw sugar edges up, London cocoa slips as pound strengthens

LONDON, July 5 (Reuters) - Raw sugar futures rose on Thursday, supported by light speculative buying, while a firmer British pound pushed London cocoa lower.

Raw sugar, arabica coffee and New York cocoa markets reopened after a U.S. holiday on Wednesday.

SUGAR

* October raw sugar was up by a tenth of a cent, or 0.9 percent, at 11.49 cents per lb at 1117 GMT.

* The market was catching up with gains made in white sugar in the previous session after a holiday shuttered U.S. soft commodities markets on Wednesday.

* Dealers noted prices were also boosted by light buying as speculators took profits after short-selling aggressively earlier in the week.

* The front month fell by more than 5 percent on Monday to a six-week low.

* “The little rallies we’re seeing are mostly relief rallies,” said one European dealer. “But the producers are looking for any opportunity to sell.”

* August white sugar rose $1.60, or 0.5 percent, to $342.70 a tonne.

* The front-month premium over the second position strengthened further on Thursday, with dealers noting open interest remains large ahead of expiry on July 16.

* Dealers pointed to tighter supplies of sugar that meets the necessary criteria to be tendered in spite of a broader global glut.

* “The question is what is available for delivery,” the dealer said. “And given the low, flat price environment, there aren’t too many producers willing to let go of their sugar.”

* Britain’s Associated British Foods warned that lower European Union prices would hit profit in its sugar business, sending its shares sharply lower on Thursday.

COCOA

* September London cocoa fell 13 pounds, or 0.7 percent, to 1,785 pounds a tonne, partly pressured by a firmer British pound.

* September New York cocoa slipped $16, or 0.7 percent, to $2,738 a tonne.

* Traded volumes remained thin as participants awaited fresh indications on the progress of the mid-crop in West Africa.

COFFEE

* September arabica coffee rose 0.1 cents, or 0.1 percent, to $1.1200 per lb, hovering just above the 4-1/2 year low of $1.1155 touched on Monday.

* Colombia’s June arabica coffee output rose 3.6 percent year on year, but exports dipped 4.3 percent amid low international prices.

* September robusta coffee fell $3, or 0.2 percent, to $1,686 a tonne.

* Vietnam, the world’s top robusta coffee producer, is expected to export between 110,000 tonnes and 140,000 tonnes of coffee in July, traders said on Thursday. (Reporting by Ana Ionova Editing by David Goodman )

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