December 4, 2018 / 7:25 PM / 8 days ago

SOFTS-Arabica, robusta coffee dip to two-month lows

 (Recasts, updates prices throughout; adds comments; NEW YORK
dateline)
    NEW YORK/LONDON, Dec 4 (Reuters) - Arabica and robusta
coffee futures on ICE dropped to two-month lows on Tuesday on
expectations of plentiful global supplies, while sugar and cocoa
also fell.
       
    COFFEE
    * March arabica coffee        settled down 0.9 cent, or 0.8
percent, at $1.069 per lb after setting a two-month low of
$1.06.
    * The next support level was at $1.05, dealers said.     
    * Prices have been pressured by expectations of plentiful
supplies, especially from top producer Brazil. The country's
green exports in November were a record high 3.89 million bags,
official data showed on Monday.             
    * A weak Brazilian real       , which can encourage producer
selling, also weighed on prices, dealers said.
    * Colombian coffee exports in November were up 7.9 percent
year on year, data from a coffee growing association showed. 
The possibility of an El Niño pattern developing early 2019,
however, could reduce the country's rainfall and negatively
affect its coffee production.                            
     * March robusta coffee         settled down $10, or 0.6
percent, at $1,556 per tonne after dipping to $1,580, its lowest
since Oct. 3. 
    * The market was on the defensive as the harvest in top
producer Vietnam gathers pace, dealers said.
            
    SUGAR
    * March raw sugar        settled down 0.16 cent, or 1.2
percent, at 12.75 cents per lb.
    * The market was struggling to sustain advances above 13
cents, dealers said, despite support from a rise in energy
prices that could encourage the increased use of cane to produce
ethanol in Brazil.
    * "Clearly, the selling is starting up around 13 cents,"
said Jack Scoville, vice president of Price Futures Group in
Chicago. 
    * Sugar cane crushing in India has gained momentum and mills
have produced 1.5 percent more sugar than last year, a leading
trade body said.             
    * March white sugar         settled down $6.10, or 1.7
percent, at $344.30 per tonne.

    COCOA
    * March New York cocoa        settled down $16, or 0.7
percent, at $2,187 per tonne with the market choppy but lacking
a clear overall trend.
    * "There is good demand but crops are pretty good as well,
so we've got a balanced market," one London dealer said.
    * March London cocoa         settled down 8 pounds, or 0.5
percent, at 1,611 pounds per tonne.
    * Farmers in Ivory Coast's cocoa-growing regions said on
Monday that moisture levels were sufficient to sustain their
crops despite the arrival of dry Harmattan winds and slightly
below-average rainfall last week.             

 (Reporting by Ayenat Mersie in New York and Nigel Hunt in
London; editing by David Goodman, Mark Potter and David
Gregorio)
  
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