July 26, 2019 / 6:38 PM / 5 months ago

SOFTS-Arabica coffee hits one-month low amid summer slowdown, excess supply

 (Updates prices and market activity; adds comments, NEW YORK to
dateline)
    NEW YORK/LONDON, July 26 (Reuters) - Arabica coffee prices
fell for the sixth straight session on Friday, settling below
the $1 per pound level for the first time in a month, as global
oversupply came back into sharp focus following a frost scare in
Brazil. 
        
    COFFEE
    * September arabica coffee        settled down 0.9 cent, or
0.9%, at 99.75 cents per lb, after hitting a one-month low of
99.05 cents.
    * "Oversupply (is) keeping values a bit depressed. (What's)
surprising is the lack of buying even at the lower levels.
Consumption has slowed down significantly," said Roger Bradshaw
of Soft Commodity Consulting. 
    * The market has struggled to absorb a massive Brazilian
crop.
    * The contract shed 5.8% on the week, its worst weekly
performance in nearly two years. 
    * Prices have slipped after a frost in top-grower Brazil
earlier this month did not damage as much of the coffee crop as
many had expected. 
    * Prices have also been pressured by the Brazilian real,
which has steadily softened against the U.S. dollar over the
past week. 
    * A weaker real can encourage producer selling of
dollar-denominated coffee.      
    * Arabica coffee prices will rise 14% by the end of 2019,
bolstered by strong global demand and Brazil's entry into an
off-year in its biennial production cycle, a Reuters poll
showed.             
    * September robusta coffee         settled down $14, or 1%,
at $1,344 per tonne.
       
    SUGAR
    * October raw sugar        settled up 0.02 cent, or 0.2%, at
12.02 cents per lb, closing at or above the psychologically
significant 12-cent level for the third straight session.
    * Prices gained 3.7% on the week, following two weeks of
declines. 
    * Prices were likely to remain rangebound, dealers said, as
the market has been caught between massive global stockpiles and
expectations of reduced future production. 
    * Concerns about adverse weather in Europe and India are
underpinning the market, as is data indicating Brazilian cane
mills will further cut sugar output this year in favor of
ethanol.                          
    * Still, recent large deliveries of raw and white sugar
against futures contracts have heightened worries over excess
stocks and poor Asian demand.             
    * October white sugar         settled up $1, or 0.3%, at
$321 per tonne. The contract gained 1.4% on the week.
          
    COCOA
    * September New York cocoa        settled down $45, or 1.9%,
at $2,389 per tonne.
    * On the week, the contract shed 3.2%.
    * Market participants remained focused on trying to discern
how exactly Ivory Coast and Ghana's "living income differential"
of $400 a tonne will work.               
    * September London cocoa         settled down 18 pounds, or
1%, at 1,843 pounds a tonne.

 (Reporting by Ayenat Mersie in New York and Maytaal Angel in
London; Editing by Jan Harvey and Diane Craft)
  
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