August 31, 2018 / 6:04 PM / 3 months ago

SOFTS-New York cocoa jumps on chart-based support, coffee eases

 (Rewrites throughout, updates prices; adds comment, NEW YORK
dateline)
    NEW YORK/LONDON, Aug 31 (Reuters) - New York cocoa futures
on ICE rallied on Friday, on chart-based buying that helped lift
its monthly gains to the strongest since April, while arabica
coffee quietly extended losses in its weakest monthly
performance in nearly two years.
    Raw sugar, arabica coffee and New York cocoa contracts will
be closed on Monday for the Labor Day holiday.             
            
    COCOA
    * December New York cocoa        settled up $61, or 2.7
percent, at $2,336 per tonne.
    * The second-position contract closed August up 5.2 percent,
its strongly monthly performance since April as weekly bean
arrivals to ports in top grower Ivory Coast fell below year-ago
levels.
    * Prices were lifted by technical buying above support at
$2,250 and month-end buying, traders said.
    * December London cocoa         settled up 29 pounds, or 1.8
percent, at 1,688 pounds per tonne. For the month, it closed up
2.7 percent, also its strongest monthly gain since April.
    
    COFFEE
    * December arabica coffee        settled down 0.85 cent, or
0.8 percent, at $1.018 per lb, just above last week's 12-year
low of 99.35 cents.
    * It closed August down 10 percent, its biggest monthly drop
since November 2016, after the weaker currency        in top
grower Brazil and expectations for a record crop there spurred
heavy selling, traders said.
    * "It's just following the (Brazilian) real down," said
Shawn Hackett, president of Hackett Financial Advisors.
    * The downside trend remains firmly intact, said Sucden
Financial technical analyst Geordie Wilkes.
    * "Despite weakening currencies in some of the world's
larger coffee producers that offer some respite with the lower
terminal markets, the costs of imported inputs such as
fertilizer has increased not only in U.S. (dollar) terms but
further impacted by the weaker currencies which could impact
2019-20 crop output," Volcafe Ltd said in a weekly report seen
by Reuters.
    * November robusta coffee         settled down $21, or 1.4
percent, at $1,501 per tonne. The second-position closed the
month down 8.3 percent, its weakest monthly performance since
April 2017.
    * Coca-Cola Co        has agreed to buy coffee chain Costa,
taking on the likes of Starbucks          and Nestle          in
the booming global coffee market.             
    
    SUGAR
    * October raw sugar        settled up 0.03 cent, or 0.3
percent, at 10.6 cents per lb. It closed the month up 0.5
percent, after rebounding above last week's 10-year low.
    * The prior session's rally generated chart-based buying,
though any major recovery in prices could be limited by excess
supplies, traders said.
    * October white sugar         settled up $1.60, or 0.5
percent, at $325.90 per tonne.

 (Reporting by Marcy Nicholson in New York and Nigel Hunt in
London; editing by David Goodman and Susan Thomas)
  
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