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SOFTS-Arabica coffee rises after 9 months of decline; cocoa up 3%


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NEW YORK/LONDON, July 15 (Reuters)Arabica coffee futures on ICE partially recovered on Friday from a nine-month low in the previous session, gaining 2.3%, but downside pressure persisted amid global growth concerns and better prospects of production in the main Brazilian producer.

Meanwhile, New York cocoa rose more than 3% from a two-year low.

COFFEE

* September arabica coffee KNc2 stood 4.5 cents, or 2.3%, at $1.998 a pound, after closing down 5.8% on Thursday after hitting a nine-month low at $1.9495.

* Dealers said the market had become oversold after Thursday’s session, but spoke of fading fears that frosts could hit Brazil’s coffee regions and hurt next season’s crop, coupled with better-than-average production expected this season and an increase in exports.

* In broader markets, the US dollar, seen by many as a safe haven, held near a two-decade high amid global growth and inflation concerns. A strong dollar makes commodities like coffee more expensive for non-US investors. XRF/

* September robusta coffee LRCc2 fell $7, or 0.4%, to $1,923 a tonne, after hitting its lowest level in nearly a year at $1,914.

COCOA

* September New York Cocoa CCc2 rose $74, or 3.3%, to $2,321 a tonne, after hitting a two-year low on Thursday.

* Dealers said the strong dollar was hurting cocoa and also raised concerns about worsening demand for the chocolate ingredient.

* They added that the funds likely built up record net short positions this week. CFTC will be released later Friday.

* September London Cocoa LCCc2 Pink 36 pounds, or 2.1%, at 1,720 pounds per ton​, after hitting its lowest level since early March on Thursday.

SUGAR

*October raw sugar SBc1 Pink 0.28 cents, or 1.5%, to 19.25 cents per pound.

* Traders said the short-term tightening of white sugar, linked in part to India’s export constraints, is limiting raw material losses.

* New legislation approved by Brazil’s Congress has restored a tax advantage for biofuels over fossil fuels – a move that should benefit ethanol and sugar in the longer term.

* August white sugar LSUc1expired increasing $3.00, or 0.5%, to $598.60 per tonne.

* Traders said expiry deliveries reached 4,528 lots, or 226,400 tons.

(Reporting by Marcelo Teixeira and Maytaal Angel; Editing by Shinjini Ganguli and Jonathan Oatis)

(([email protected]; +1 332 220 8062; Reuters messaging: [email protected]https://twitter.com/tx_marcelo))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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