April 26, 2018 / 5:58 PM / 7 months ago

CORRECTED-SOFTS-NY cocoa falls from 1-1/2-year high, sugar bounces above lows

 (In sugar section, corrects to say the sector, not the company,
could decide to cancel contracts.)
    NEW YORK/LONDON, April 26 (Reuters) - New York cocoa futures
on ICE turned lower after rallying to a 1-1/2-year high on
Thursday, pressured by profit-taking, while sugar prices bounced
above the prior session's multiyear lows. 
    
    COCOA
    * July New York cocoa        settled down $34, or 1.2
percent, at $2,802 per tonne, after rallying to $2,943, its
highest since September 2016.
    * Prices were buoyed earlier by signs of improved demand
after Hershey Co         reported strong sales in North America,
while signs of smaller-than-expected crops in West Africa have
also been supportive.                          
    * Profit-taking pushed prices lower just below the
resistance level of $2,950, traders said.
    * The drop in prices weakened the New York July contract's
rare premium over London July for the first time in 10 sessions.
This took it below Wednesday's level, which was a 41-year high
above $230.             
    * July London cocoa         settled up 13 pounds, or 0.7
percent, at 1,875 pounds per tonne. 
    * Origin hedging has capped gains in London, although
dealers noted this pressure was easing as producers in Ivory
Coast and Ghana were now seen as relatively well hedged. 
                       
    SUGAR
    * May raw sugar       , which expires on Monday, closed up 1
percent at 10.97 cents per lb, above the prior session's
2-1/2-year low. Open interest was down 9,755 lots at 53,840 lots
as of April 15.
    * Most-active July        settled up 0.26 cent, or 2.3
percent, at 11.38 cents per lb, its strongest one-day rise in
eight weeks.
    * This caused the May discount to July SBK8-N8 to widen
sharply to as much as 0.42 cent, the biggest for the contract.
    * August white sugar         settled up $9.40, or 3 percent,
at $321.70 per tonne, rebounding above its lowest since December
2008 on Wednesday.
    * Prices corrected higher after falling to technically
oversold levels on Wednesday, traders said.
    * "There are some commercial longs coming in again.
Fundamentally, though, the numbers for production and surplus
are so big, it's hard to imagine what could change quickly,"
said a European analyst.
    * The Brazilian unit of Cofco is likely to raise 2018-19
ethanol output and the sector could even cancel sugar sales
contracts, said Mauricio Sacramento, Cofco's head of sugar
trading.             
    
    COFFEE
    * July arabica coffee        settled up 0.85 cent, or 0.7
percent, at $1.1965 per lb. 
    * "We're hearing people aren't interested in shorting it. It
might be at a bottom," said Peter Mooses, senior market
strategist for RJO Futures in Chicago.
    * July robusta coffee         settled up $11, or 0.6
percent, at $1,771 per tonne.

 (Reporting by Marcy Nicholson in New York and Ana Ionova in
London; additional reporting by Chris Prentice; editing by Jon
Boyle and Diane Craft)
  
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