May 10, 2018 / 6:07 PM / 4 months ago

SOFTS-Arabica coffee bounces above two-week low, sugar dips

 (Rewrites throughout, updates prices; adds trader comment, NEW
YORK dateline)
    NEW YORK/LONDON, May 10 (Reuters) - Arabica coffee futures
on ICE rebounded from a two-week low on Thursday, up for the
first time in five sessions on support from a stronger Brazilian
currency, while sugar prices dipped after data showed a strong
start to the 2018/19 cane crush there.
    Brazil is the world's biggest producer of coffee and sugar.
    
    COFFEE
    * July arabica coffee        settled up 0.8 cent, or 0.7
percent, at $1.1955 per lb, after falling to a two-week low at
$1.1835.
    * Prices were boosted partly by a strengthening in top
producer Brazil's real currency against the dollar       ,
traders said.             
    * The real had fallen to a 2016 low the prior session, which
made dollar-denominated prices more attractive in local currency
terms.
    * Arabica prices rebounded after tapping a technical support
level around $1.185, traders said.
    * July robusta coffee         settled down $4, or 0.2
percent, at $1,743 per tonne, after touching a three-week low of
$1,728.  
    
    SUGAR
    * July raw sugar        settled down 0.02 cent, or 0.2
percent, at 11.27 cents per lb, after falling to 11.14 cents.
    * Prices fell to session lows after data showed Brazil's
center-south, the world's largest sugar producing region,
crushed about 50 percent more cane in April, the first month of
the 2018/19 local crop season, than a year earlier as dry
weather accelerated field work.             
    * Dealers said the proportion of cane used for sugar rather
than ethanol was below the previous season, as expected, but the
volume of cane and amount of sucrose in the cane were both above
year-ago levels.
    * Volume was light, however, as industry members gathered
for what is called "Sugar Week" in New York, where some
participants have forecast lower output from top grower Brazil.
            
    * India's large crop is expected to more than compensate for
the lowest output in a decade from central Brazil.             
    * August white sugar         settled down 50 cents, or 0.2
percent, at $323.40 per tonne.
    * The premium for white sugar         over its raw
equivalent        has recovered to about $70 a tonne recently. 
    * "Those levels might interest some Thai millers but are
unlikely to be high enough for most standalone refineries,"
Commonwealth Bank of Australia's Tobin Gorey said in a note,
referring to the white premium over raws. 
    
    COCOA 
    * July New York cocoa        settled down $8, or 0.3
percent, at $2,762 per tonne.
    * July London cocoa         settled up 7 pounds, or 0.4
percent, at 1,931 pounds per tonne.

 (Reporting by Marcy Nicholson in New York, and Ana Ionova and
Nigel Hunt in London; editing by David Goodman and Grant McCool)
  
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