July 25, 2019 / 7:14 PM / 23 days ago

SOFTS-Raw sugar, arabica coffee edge downward

 (Updates prices and market activity; adds comments, NEW YORK to
dateline)
    NEW YORK/LONDON, July 25 (Reuters) - Raw sugar futures on
ICE inched lower on Thursday, as the market weighed news of
reduced output from top-grower Brazil against ample near-term
global supplies, while arabica coffee fell for the fifth
straight session. 
       
    SUGAR
    * October raw sugar        settled down 0.06 cent, or 0.5%,
at 12 cents per lb.
    * Market participants continue to weigh signs of plentiful
short-term supplies, as indicated by large deliveries of raw and
white sugar against the recently expired futures contracts, with
signals of reduced future output.
    * In top-producer Brazil's center-south region, sugar output
slumped 19% in the first half of July, cane industry group Unica
said. It said about 400,000 hectares of cane fields were
affected by frosts earlier this month, which may impact yields.
            
    * "The Unica data was definitely more constructive than
expected. I suspect people are revising down their sugar
production forecasts today," a dealer said.
    * Continued concerns about the weather in India, a top sugar
producer and consumer, also underpinned the market. While the
monsoon so far has under-performed, rains are likely to be
above-average in the coming two weeks, a weather department
official said.             
    * World sugar prices are forecast to rise by the end of this
year with a global deficit projected for the 2019-20 season, a
Reuters survey showed.              
    * October white sugar         settled down $1.2, or 0.4%, at
$320 per tonne.
  
    COFFEE
    * September arabica coffee        settled down 0.35 cent, or
0.4%, at $1.0065 per lb, after dipping to a one-month low of
$1.0030.
    * Ample global supplies have come back into focus as the
threat of a crop-damaging Brazilian frost retreats.
    * A softer Brazilian real, which hit its weakest in over two
weeks against the U.S. dollar, also weighed, dealers said, as a
weaker real can encourage producer selling.        
    * September robusta coffee         settled down $2, or
nearly 0.2%, at $1,358 per tonne.
    * Vietnam's domestic coffee prices fell from a week ago with
trading activity expected to remain slow until the 2019-20 crop
year.             
        
    COCOA
    * September New York cocoa        settled down $29, or 1.2%,
at $2,434 per tonne, its third consecutive negative finish.
    * Market participants remain focused on how the recently
announced $400 a tonne "living income differential" by top
producers Ivory Coast and Ghana will be implemented.
            
    * New York cocoa prices are forecast to end the year
marginally above current levels as the market looks set to flip
into deficit in the 2019-20 season, a Reuters poll showed.
            
    * September London cocoa         was down 1 pounds, or less
than 0.1%, at 1,843 pounds a tonne.

 (Reporting by Ayenat Mersie in New York and Maytaal Angel in
London; Editing by Dale Hudson, Jan Harvey and Will Dunham)
  
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