Tuesday, August 21, 2012

ICE sugar eases, above 2-month low, coffee dips

coffeemarketnews_coffee_030_640x480LONDON Aug 21 (Reuters) - Raw sugar futures on ICE eased slightly on Tuesday, although they were still above a two-month low, as the market remained under pressure from harvesting in top grower Brazil.

A softer dollar pushed up cocoa and arabica coffee on ICE slightly, although arabica was still at low levels due to the Brazil harvest.

SUGAR

* Raw sugar futures had broken out of a downtrend to close higher on Monday and on Friday following 13 consecutive declines.

* Dealers said favourable weather in Brazil had enabled the pace of harvesting to pick up and that producer selling weighed on prices on Tuesday. They awaited data on the Brazilian cane crush expected later this week.

* Benchmark October sugar futures on ICE fell 0.09 cent or 0.4 percent to 20.41 cents a lb by 0919 GMT. The contract touched 20.11 cents on Friday, the lowest level for the front month since June 15.

* New York October sugar SBV2 will rebound towards 21.21 cents per lb over the next few trading sessions, with an immediate target at 20.79 cents, according to Reuters market analyst Wang Tao.

* White sugar October futures on Liffe fell $2.30 or 0.4 percent to $563.90 per tonne.

* An emerging El Nino weather pattern is likely to have only a modest impact on crops and mining in Australia and could benefit sugar cane growers in Queensland, a senior forecaster said.

* Thai raw sugar premiums have hardly moved this week as high prices scared off buyers, while Indonesia is expected to chase Brazilian supplies when trading returns to normal after a Muslim holiday, dealers said on Tuesday.

* The U.S. Environmental Protection Agency on Monday said it had begun weighing requests to suspend the U.S. ethanol mandate, which requires refiners to blend ethanol into gasoline, and was seeking public feedback.

COFFEE

* Arabica coffee rose after reaching an eight-week low on Friday as plentiful supplies on the physical market weighed due to harvesting in Brazil.

* December arabicas on ICE were up 0.50 cent or 0.3 percent at $1.6505 a lb at 0918 GMT. The second-month had slid to $1.6025 per lb on Friday, the lowest level for the second month since June 26.

* New York Sept coffee KCU2 will rebound to $1.6530 per lb, as a correction from the July 20 high of $1.9085 has completed, according to Reuters market analyst Wang Tao.

* November robusta coffee futures were down $2 or 0.1 percent at $2,102 a tonne.

* Nicaragua's coffee exports rose 52.2 percent in July compared with the same month last year, reaching 146,823 60-kg bags for the month.

* Speculators reduced net long positions in robusta coffee, white sugar and feed wheat futures and options on NYSE Liffe in the week to Aug. 14, exchange data showed on Monday.

COCOA

* Cocoa futures on ICE got a boost from the easing dollar against a basket of currencies.

* ICE December cocoa futures were up $10 or 0.4 percent at $2,418 per tonne, remaining below last week's nine-month high of $2,501.

* New York Dec cocoa CCZ2 will retrace more to $2,329 per tonne, as indicated by its wave pattern and a Fibonacci retracement analysis, according to Reuters market analyst Wang Tao.

* Liffe December cocoa futures traded up 4 pounds or 0.25 percent at 1,614 pounds ($2,500) per tonne.

* Swiss confectioner Lindt & Spruengli said it expected consumers to restrict their spending as the euro zone crisis drags on, as it reported a first-half net profit that fell short of expectations.

* Cameroon's only cocoa grinder, Sic-Cacaos, bought 32,304 tonnes of beans in the 2011-12 season, which ended last month, figures issued by the National Cocoa and Coffee Board (NCCB) and confirmed by the company showed.

MARKETS

* European shares and the euro edged higher on optimism that meetings on Greece's future and a strategy being drawn up by the European Central Bank will lead to progress in solving the euro zone debt crisis.

($1 = 0.6368 British pounds) (Reporting by David Brough; Editing by Jane Baird)

Source: http://af.reuters.com/article/commoditiesNews/idAFL6E8JL5K820120821?sp=true

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