3 Min Read
LONDON, July 17 (Reuters) - Raw sugar and cocoa futures on ICE consolidated on Monday after last week's advances while arabica coffee touched a fresh 6-1/2 week high.
* October raw sugar was unchanged at 14.30 cents per lb at 1118 GMT, consolidating near highs touched last week.
* Prices have climbed in recent sessions supported by a wave of short-covering, partly inspired by a strengthening Brazilian real.
* However, dealers noted that trade was thin and industry players were reluctant to buy at current levels as the market prepares to enter a surplus season.
* Dealers also noted the elevated prices were likely to boost output in top producer Brazil, reinforcing the bearish fundamental backdrop.
* "What this bounce has done is it's brought the sugar price away from ethanol returns," said one dealer. "In Brazil, the focus will continue to be on sugar. And it becomes more negative the longer the price is around these levels."
* October white sugar was $0.30, or 0.08 percent, lower at $398.70 a tonne.
* ICE Futures Europe said on Monday that 199,050 tonnes of white sugar had been tendered against the August contract that expired on Friday.
* September arabica coffee rose 0.65 cent, or 0.49 percent, to $1.3435 per lb after climbing to a 6-1/2 week high of $1.3440.
* Dealers said the market was supported by lower exports, talk of smaller beans in Brazil and a more bullish outlook on price charts following the recent run-up in prices.
* September robusta coffee was up $4, or 0.19 percent, at $2,150 per tonne.
* September New York cocoa was off $4, or 0.21 percent, at $1,911 a tonne.
* Dealers said the market was consolidating after last week's run-up in prices which saw the market rebound from a low of $1,791 on Tuesday to a peak of $1,922 on Friday.
* A mix of healthy rainfall and sunny spells last week in most of Ivory Coast's cocoa regions spurred the growth of flowers and pods, boosting the prospects for a strong start to the upcoming main crop, farmers said on Monday.
* September London cocoa fell 5 pounds, or 0.33 percent, to 1,504 pounds a tonne.
* A total of 101,610 tonnes of cocoa has been tendered against the ICE July London cocoa contract that expired on Friday, exchange data showed on Monday. (Reporting by Nigel Hunt and Ana Ionova; editing by David Clarke)