October 16, 2017 / 8:39 PM / a month ago

SOFTS-ICE arabica drops to near four-month low on Brazil rain expectations

(Updates throughout with fresh comment, closing prices; adds NEW YORK dateline)

NEW YORK/LONDON, Oct 16 (Reuters) - Arabica coffee on ICE Futures U.S. slid to a near four-month low on Monday, under pressure from favorable rains forecast for top producer Brazil, as raw sugar and cocoa also fell.

A stronger dollar also weighed, dealers said, helping to pressure the Thomson Reuters CoreCommodity CRB Index from a five-month high.

COFFEE

* December arabica coffee settled down 2.7 cents, or 2.14 percent, at $1.2375 per lb. It hit $1.237, the weakest for the most-active contract since June 23.

* Forecasts for rains after unfavorable dry weather pressured prices, dealers said, noting forecasts for showers at the end of this week in Brazil. Those would arrive during the crucial crop flowering period that require rains to encourage pollination.

* “This is the time when coffee is under flowering pressure, and Brazil is going to get the rain it needs. The dryness seems to be dissipating,” a U.S. trader said.

* Prices have been pressured by persistent fund selling and expectations of boosted output in Brazil.

* November robusta coffee settled down $21, or 1.05 percent, at $1,988 per tonne.

COCOA

* December New York cocoa settled down $43, or 2.06 percent, at $2,044 per tonne.

* Prices hit a six-month high last week as speculators covered short positions, partly inspired by stronger-than-expected European cocoa grind data.

* Cocoa prices have since seen a 3.6-percent slide, extending their losses on Monday after weekly U.S. government data published late Friday showed the week’s earlier rally had come amid a flurry of speculator short-covering.

* “I think the industry feels comfortable, I don’t see them exactly stepping up to the plate in a hurry to extend their cover,” said one dealer.

* December London cocoa finished down 29 pounds, or 1.85 percent, at 1,537 pounds per tonne.

* Since the start of the season on Oct. 1, port arrivals in top grower Ivory Coast totaled around 67,000 tonnes as of Oct. 15, down from 98,000 tonnes in the same period of the previous season.

* Third-quarter grind data from North America and Asia was due this week, with four traders forecasting the data for North America to be up 2-3 percent compared with the prior-year period.

SUGAR

* March raw sugar settled down 0.23 cent, or 1.6 percent, at 14.18 cents per lb.

* Prices were weighed by plentiful global supplies and expectations that producers in top producer Brazil were underhedged.

* December white sugar finished down $5.80, or 1.55 percent, at $369 per tonne. (Reporting by Chris Prentice and Ana Ionova; Additional reporting by Marcy Nicholson; editing by Jane Merriman and G Crosse)

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