September 7, 2017 / 6:49 PM / 19 days ago

SOFTS-ICE raw sugar dips on expectations of greater global supplies

(Recasts, updates prices; adds comment, NEW YORK dateline)

NEW YORK/LONDON, Sept 7 (Reuters) - Raw sugar futures on ICE dropped on Thursday as an expected rebound in production in top-consumer India offset support from ethanol-boosting tax policy in Brazil.

SUGAR

* October raw sugar settled down 0.26 cent, or 1.8 percent, at 14.03 cents per lb.

* Expectations for India’s production to rebound in 2017/18 kept prices lower, said Shawn Hackett, president of Hackett Financial Advisors in Boca Raton, Florida.

* The International Sugar Organization estimated India’s 2017/18 output to rise by about 22 percent to 25 million tonnes in the year beginning October.

* That offset the implementation a new Brazilian tax policy promoting ethanol, he said. The new policy went into effect this month.

* Market participants were monitoring Hurricane Irma’s rip through Florida, a key U.S. sugarcane growing region.

* October white sugar settled down $4, or 1.1 percent, at $376.60 per tonne.

COFFEE

* November robusta coffee settled up $5, or 0.3 percent, at $1,950 per tonne.

* The market consolidated after prices slipped in the previous session to the weakest since May 25.

* December arabica coffee settled up 1.25 cent, or 0.98 percent, at $1.2915 per lb.

* Market participants lowered expectations for the current crop potential, worried that a premature flowering in key Brazilian growing areas and dry weather would produce fewer acceptable beans, boosting prices, said Hackett.

* “If the dry weather does become a thing, we’re building a good base for (prices) to come off of later,” said Jack Scoville, vice president Chicago-based Price Futures Group.

COCOA

* December London cocoa settled down 18 pounds, or 1.2 percent, at 1,472 pounds per tonne, with a stronger British pound helping to keep a lid on the market.

* The stronger Sterling encourages buying of dollar-traded New York cocoa over its British counterpart.

* December New York cocoa settled down $11, or 0.6 percent, at $1,906 per tonne.

* Huge crops in Ivory Coast and Ghana this year are keeping the market on the defensive.

* Rains are expected to enter Ghana and top-grower Ivory Coast in the coming days, Kenny Miller of Gaithersburg, Maryland-based MDA Weather Services wrote in a note.

* “But conditions should remain favorable for early main crop harvesting overall,” Miller said.

Reporting by Renita D. Young in New York, Ana Ionova and Nigel Hunt in London; Editing by Alexander Smith and Richard Chang

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below