3 Min Read
LONDON, July 11 (Reuters) - Raw sugar futures on ICE were lower on Tuesday as the market resumed its downtrend after a short covering rally ran out of steam, while cocoa and coffee prices also fell.
* October raw sugar fell 0.12 cents, or 0.88 percent, to 13.44 cents per lb by 1122 GMT.
* Dealers said the market was back on the defensive after a short-covering rally took prices to a four-week high of 14.39 cents on Monday.
* "So far an entire week's gains have been wiped out, thus confirming that the rally was a technical one taking place in an oversold market," Sucden Financial senior trader Nick Penney said in a market update.
* News that India had raised its import tax on sugar heightened the bearish mood on fundamentals.
* "This is further bearish news for the sugar market, with this development coming not too long after the Chinese government also decided to increase the import duty rate on sugar," ING said in a market note.
* August white sugar fell $1.80, or 0.44 percent, to $402.20 a tonne.
* The European Commission on Tuesday forecast that white sugar production in the European Union would reach 20.1 million tonnes in 2017/18, 20 percent above output in the current 2016/17 season.
* September New York cocoa fell $15, or 0.82 percent, to $1,823 a tonne.
* Dealers said the market continued by weighed down by the strong pace of production in top grower Ivory Coast.
* Cocoa grindings in Ivory Coast have also risen sharply.
* Europe's second-quarter cocoa grind rose 2.1 percent from the same period last year to 331,850 tonnes, the Brussels-based European Cocoa Association said on Tuesday.
* Dealers had expected the grind to increase by 2 to 3 percent.
* September London cocoa fell 17 pounds, or 1.16 percent, to 1,448 pounds a tonne.
* September robusta coffee fell $5, or 0.24 percent, to $2,095 per tonne.
* Vietnam, the world's top robusta producer, exported 122,000 tonnes (2.03 million 60-kg bags) of coffee in June, the same volume as last month, the General Department of Vietnam Customs said on Tuesday, slightly above the government estimate and market expectations.
* September arabica coffee fell 0.05 cent, or 0.04 percent, to $1.2855 per lb. (Reporting by Nigel Hunt, editing by David Evans)