June 21, 2018 / 11:33 AM / 10 months ago

SOFTS-London cocoa turns lower after setting 3-week high

LONDON, June 21 (Reuters) - London cocoa prices were lower on Thursday in a modest pullback from an earlier three-week high while raw sugar held at little changed levels and arabica coffee eased slightly.


* September London cocoa was down 18 pounds, or 1.0 percent, at 1,822 pounds a tonne by 1112 GMT after peaking at a three-week high of 1,847 pounds.

* “This could be just an intra-day pullback given the magnitude of what we’ve done (on the upside),” one dealer said, adding price charts still appeared bullish after the recent advance in prices.

* Dealers said the front month’s move to a premium LCC-1=R on Wednesday helped given some strength to the market although it slipped back to around parity on Thursday in thin volume.

* Spot prices have been supported by a lack of selling from origins like Ivory Coast and Ghana, which have hedged much of their supplies already.

* Heavy rains in Ivory Coast was not seen as a major threat to cocoa in the commercial capital Abidjan despite heavy flooding and could improve the outlook for the mid-crop, dealers added.

* September New York cocoa fell $27, or 1.1 percent, to $2,526 a tonne.


* July raw sugar fell 0.01 cent, or 0.1 percent, to 11.88 cents per lb.

* Dealers said there continued to be talk that dry weather in Brazil could damage cane although some downplayed the extent of the threat.

* “We are a little sceptical that this dry period will curtail sugar production ... Certainly, if no material rain falls for an extended period then the issue takes on a different character,” Commonwealth Bank of Australia analyst Tobin Gorey said in a market note.

* “We think though that, for the time being, the issue is garnering more attention than it deserves because there is little else to focus on,” Gorey said.

* August white sugar was down $2.40, or 0.7 percent, to $339.70 a tonne.


* September arabica coffee fell 0.3 cent, or 0.3 percent, to $1.1635 per lb, drifting down towards Tuesday’s low of $1.1495, the weakest since March 2016.

* Dealers said conditions were quiet with the prospect of a huge crop in Brazil this season keeping the market on the defensive.

* September robusta coffee fell $9, or 0.52 percent, to $1,686 a tonne. (Reporting by Nigel Hunt Editing by Edmund Blair)

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