June 20, 2019 / 6:10 PM / 4 months ago

SOFTS-Coffee surges on weak dollar, technical signals; cocoa falls

(Updates prices and market activity; adds comments, NEW YORK dateline)

NEW YORK/LONDON, June 20 (Reuters) - Arabica coffee prices on ICE rallied on Thursday to a one-week high on technical signals and a weaker U.S. dollar, while cocoa prices slid to nearly two-week lows.


* September arabica coffee settled up 3.85 cent, or 3.9%, at $1.018 per lb. Earlier, prices touched $1.0195, a one-week high.

* “With the weaker dollar, the strong (Brazilian) real and the chart pattern, were seeing the market do a pretty nice recovery,” said Jack Scoville, vice president at Price Futures Group.

* The dollar was on track for its biggest two-day drop this year after the Federal Reserve signaled it was ready to cut interest rates as early as next month.

* A weak dollar makes dollar-priced commodities like coffee cheaper for holders of other currencies.

* The monthly arabica contract rallied through its 100-day moving average around $1.0068 and settled above a 38% retracement of its May 7 low and June 4 high.

* Still, prices have closed lower in seven of the past 10 sessions, as oversupply in Brazil continues to weigh.

* September robusta coffee settled up $47, or 3.4%, at $1,419 per tonne.

* Coffee prices in Vietnam remained little changed on the week with farmers unwilling to sell the remaining 5% of their 2018/19 output at current prices. COCOA

* September New York cocoa settled down $67, or 2.7%, at $2,446 per tonne, after falling to a nearly two-week low of $2,444.

* September London cocoa settled down 42 pounds, or 2.3%, at 1,812 pounds.

* Prices climbed to an 11-month high last week as top growers Ivory Coast and Ghana announced plans to set a floor price for cocoa.

* Ghana’s Cocobod will open its cocoa light crop purchases on Friday, maintaining the price it pays farmers at 7,600 cedis ($1,407) per tonne.

* Heavy rainfall and poor sunshine across Nigeria’s cocoa-growing regions raises the likelihood of black pod disease which would hurt the main crop this season, an industry body said.


* October raw sugar settled down 0.06 cent, or 0.5%, at 12.68 cents per lb.

* This was the contract’s fourth consecutive negative finish, retreating from its more than 1-1/2-month high of 12.95 cents touched on Friday.

* Substantial volumes of Thai sugar still need to be sold, one dealer said, adding that producers likely will have to have to lower prices, which would weigh on the sweetener.

* India’s monsoon has reached parts of drought-hit Maharashtra, an official said.

* August white sugar settled down $1, or 0.3%, at $331.70 per tonne. (Reporting by Ayenat Mersie in New York and Maytaal Angel in London; Editing by Susan Fenton, Jane Merriman and Richard Chang)

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