October 24, 2018 / 11:35 AM / a month ago

SOFTS-Arabica coffee slips as chart signals sour; raw sugar also falls

LONDON, Oct 24 (Reuters) - Arabica coffee futures on ICE eased on Wednesday as speculative short-covering waned in the face of more bearish chart signals, while raw sugar also slipped and cocoa edged higher.


* December arabica coffee was down 0.5 cents, or 0.4 percent, at $1.2060 per lb by 1107 GMT, consolidating after gaining nearly 3 percent in the previous session.

* The market has been subject to sharp swings in recent days, with Tuesday’s rally offsetting a plunge a day earlier.

* Prices have rallied about 27 percent over the past five weeks, boosted by speculative short-covering partly inspired by strengthening of the real currency of top grower Brazil.

* However, dealers said technical momentum is now waning and the market is in over-bought territory, triggering a pull-back by speculative buyers.

* “Despite yesterday’s strong recovery, the indicators are weakening favouring lower prices,” Sucden Financial technical analyst Geordie Wilkes said in a market update.

* January robusta coffee was down $1, or 0.1 percent, at $1,718 a tonne.

* Uganda’s coffee shipments last month were down 14.2 percent compared with September last year, the sector regulator said.


* March raw sugar slipped by 0.04 cents, or 0.3 percent, to 13.77 cents per lb.

* Market participants were awaiting fresh data on cane crushing in top grower Brazil for the first half of October, due later on Wednesday.

* An S&P Platts survey of analysts forecast the crush at 25.05 million tonnes, with a little more than 32 percent of cane channelled to sugar. Production of the sweetener was seen at 1.08 million tonnes.

* December white sugar rose $1.50, or 0.4 percent, to $382 a tonne.

* Indonesia expects nine new sugar mills to start operation in 2020, Agriculture Minister official Syukur Iwantoro told reporters on Wednesday.


* December New York cocoa climbed $6, or 0.3 percent, to $2,193 a tonne.

* The focus remained on Ivory Coast and Ghana, where favourable weather and strong arrivals have boosted expectations for the main crop.

* “The outlook for production in 2018/19 is currently good in both countries,” Commerzbank said in a market update.

* December London cocoa rose 3 pounds, or 0.2 percent, to 1,632 pounds a tonne.

* A U.S. federal appeals court on Tuesday reinstated a lawsuit by a group of former child slaves accusing the U.S. unit of Nestle and Cargill of perpetuating child slavery on Ivory Coast cocoa farms. (Reporting by Ana Ionova Editing by David Goodman)

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