November 27, 2019 / 1:17 PM / 12 days ago

SOFTS-Raw sugar prices slip amid weak Brazilian real

LONDON, Nov 27 (Reuters) - ICE raw sugar prices slipped on Tuesday as funds paused their short covering, while a weakening Brazilian real prompted producers to sell.

SUGAR

* March raw sugar fell 0.04 cents, or 0.3%, to 12.74 cents per lb at 1258 GMT.

* Sugar prices are down 0.5% so far this week, having clocked five consecutive weeks of modest gains.

* Fund short-covering amid tightening supplies has provided support to sugar, but producer selling of excess stocks and a weakening real is keeping a firm cap on gains.

* The real hit its lowest ever level versus the dollar on Tuesday, raising the value of dollar-priced sugar in local currency terms and tempting producers to sell.

* Dealers said despite a poor outlook for the real, a break to the upside continues to be the more likely scenario as bullish supply-side news continues to bubble in the market.

* The International Sugar Organization on Tuesday raised its forecast for a projected global sugar deficit in the 2019/20 season to 6.12 million tonnes from 4.76 million previously.

* The inter-governmental body also said preliminary indications suggested a global deficit of 3.5 million tonnes for 2020/21.

* Elsewhere, the U.S. government on Monday authorized the import of an additional 100,000 short tons of Mexican refined sugar after extreme weather damaged the sugar beet crop.

* “While we continue to hold a mildly constructive view on global sugar prices, we do believe the threat of a large amount of Indian sugar exports will likely cap the market,” said ING in a note.

* March white sugar was down $6, or 0.2%, to $342 a tonne.

COFFEE

* March arabica coffee futures were up 0.1 cents, or 0.1%, at $1.1695 per lb, having settled down 1.7% on Tuesday after earlier matching Monday’s one-year peak of $1.1905.

* Arabica is benefiting overall from declines in ICE-certified stocks, which are near their lowest in nearly a year and a half.

* A global deficit is widely forecast in the 2019/20 season, an off-year in top producer Brazil’s biennial crop cycle.

* January robusta fell $5, or 0.4%, to $1,396 a tonne, having slumped 3.5% on Tuesday.

COCOA

* March New York cocoa was up $2, or 0.1%, at $2,658 a tonne.

* The contract may test resistance at $2,683 per tonne, a break above which could lead to a gain to $2,755, technical signals indicate.

* Prices have been boosted of late by a strengthening in nearby premiums in both New York CC-1=R and London cocoa LCC-1=R, indicating tight nearby supply.

* March London cocoa was down 5 pounds, or 0.3%, at 1,934 a tonne, under pressure from a stronger British currency. (Editing by Jan Harvey)

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