NY cocoa ends at 6-1/2-mth high, sugar hits 5-week low

Aug 7 (Reuters) - U.S. cocoa futures closed at their highest level in 6-1/2 months on Tuesday, on short-covering and active September/December spreading, while raw sugar finished down for the sixth straight day and at a five-week trough.

Arabica coffee finished lower but remained in its recent range.

RAW SUGAR

* Benchmark October raw sugar futures tumbled 0.41 cent, or 1.9 percent, to finish at 21.42 cents a lb, the lowest settlement since July 2.

* The October contract closed lower for a sixth straight session, having settled below its 100-day moving average on Monday.

* Pressure came from improved crop weather in top growers Brazil and India, and as importers in China resold sugar due to expectations of large supplies there - traders.

* Volume was light for the eighth straight session, at roughly 81,128 lots, down 23 percent from the 30-day average - preliminary Thomson Reuters data.

* Brazil's center-south sugarcane mills should not have to leave any of the 2012/2013 crop in the fields for processing next season, the head of the country's largest sugar exporter, Cosan, said on Monday.

* India is considering imposing a tax on sugar exports and dropping a 10 percent import duty to help curb overseas sales and keep a lid on domestic prices as a drought threatens farm output - government sources.

ARABICA COFFEE

* September arabica futures dropped 2.85 cents, or 1.6 percent, to close at $1.7265 per lb.

* The market fell in rangebound dealings as traders expected this sideways trend to continue near-term amid the summer doldrums.

* The September contract's failure to close above the 100-day moving average on Monday also added pressure - traders.

* Improved harvest weather in top grower Brazil weighed mildly - traders.

* Volume was heavy on September/December spreading ahead of the spot contract's first notice day on Aug. 23 - traders.

* ICE certified arabica stocks jumped by 10,295 lots to 1,793,812 lots on Aug. 6, the highest since October 2010, with a heavy 76,289 lots pending grading - ICE data.

COCOA

* Benchmark December cocoa futures jumped $41, or 1.7 percent, to finish at $2,450 a tonne, the highest settlement for the second position since Jan. 26.

* The December contract hit a session high at $2,457.

* Market supported by strong sterling against the U.S. dollar - traders.

* Volume was heavy on active September/December spreading ahead of first notice day for September on Aug. 20 - traders.

* The September/December spread settled at a $3 discount, having narrowed sharply from the close of $11 on Monday.

* Short-covering buoyed prices while chart-based indicators also encouraged technical dealers as the market extended its gains above the 200-day moving average and climbed 13 percent in the past three weeks - traders.

* Fighters loyal to Ivory Coast's former president Laurent Gbagbo were behind a series of attacks that killed 10 soldiers in the commercial capital Abidjan since Sunday - interior minister.

2:00 PM      SETTLE    NET     PCT      LOW    HIGH  CURRENT
                       CHNG    CHNG                       VOL
 Sugar OCT     21.42  -0.42   -1.9%    21.35   22.04   47,420
 Sugar MAR     21.91  -0.38   -1.7%    21.84   22.49   18,774
 Cocoa SEP      2447     41    1.7%    2,402   2,451   17,039
 Cocoa DEC      2450     34    1.4%    2,409   2,457   17,104
 Coffee SEP   172.65  -2.15   -1.2%   172.40  176.20   16,439
 Coffee DEC    175.3   -2.2   -1.2%   175.05  178.75   13,539
 
 TOTAL MARKET              VOLUME          
                CURRENT   30D AVG  250D AVG
 ICE SUGAR       81,128   104,647    96,101
 ICE COCOA       39,103    22,138    21,588
 ICE COFFEE      34,179    20,971    21,951

Source: http://www.reuters.com/article/2012/08/07/markets-softs-close-idUSL2E8J7BKF20120807