September 28, 2018 / 6:48 PM / in 8 months

SOFTS-Raw sugar pulls away from 10-year low, arabica also rises

 (Recasts throughout with updated prices, comment; adds NEW YORK
dateline, ICE data)
    NEW YORK/LONDON, Sept 28 (Reuters) - Raw sugar futures on
ICE rebounded on short-covering on Friday after plunging to
10-year lows in the prior session, while arabica rose to its
highest price in over a month. 
    * October raw sugar        settled up 0.37 cent, or 3.7
percent, at 10.42 cents per lb. 
    * The contract fell to a 10-year low of 9.91 the prior
session, prompting subsequent short-covering, dealers said. 
    * "After such a dramatic slide lower, the bears would argue
that some form of corrective bounce is not a surprise,
especially before the end of the week, month & quarter (and this
afternoon’s COT report) when there could be some spec short
profit taking," James Liddiard, of consultancy Agrilion, said in
a note. 
    * Louis Dreyfus Company was seen as the sole buyer of 5,337
lots of sugar against the contract, the smallest delivery
against an October contract since 2011, traders said.
    * March raw sugar        settled up 0.29 cent, or 2.7
percent, at 11.2 cents per lb. On the month, the contract lost 2
    * "We think that much of the bad news is now priced in and
that the price of sugar is near its trough," Capital Economics
said in a market note.
    * December white sugar         settled up $7.50, or 2.4
percent, at $320.5 per tonne.
    * December arabica coffee        settled up 3.15 cent, or
3.2 percent, at $1.0245 per lb, up 4.4 percent on the month.
    * Strength in the Brazilian real earlier in the day helped
support prices, dealers said.      
    * The prior session's close above the 20 day moving average
offered technical support, traders said. 
    * Concerns over a potential lack of follow-through rains to
support the second flowering of crops in Brazil was also
bullish, said Shawn Hackett, president of Hackett Financial
    * November robusta coffee         settled up $38, or 2.51
percent, at $1,554 per tonne.

    * December New York cocoa        settled down $57, or 2.70
percent, at $2,057 per tonne, the weakest level for the contract
since mid-February.
    * On the month, the contract shed 12 percent.
    * "The main crop starts in a week. You just don't buy cocoa
going into the beginning of the harvest," said one U.S. trader.
    * Cocoa arrivals at ports in top grower Ivory Coast reached
1.938 million tonnes between Oct. 1 and Sept. 16, down about 2
percent from the same period last season the country's cocoa
board said.             
    * December London cocoa         settled down 33 pounds, or
2.16 percent, at 1,496 pounds per tonne.

 (Reporting by Ayenat Mersie in New York and Nigel Hunt in
London; editing by Dale Hudson and Chizu Nomiyama)
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