October 3, 2018 / 6:04 PM / 2 months ago

SOFTS-Sugar, coffee prices extend rise as Brazil currency firms

 (Updates prices, headline; adds comment, NEW YORK to dateline)
    NEW YORK/LONDON, Oct 3 (Reuters) - Raw sugar and arabica
coffee futures rose on Wednesday buoyed  by the strength of the
currency of Brazil, the top producer of both commodities, while
cocoa plunged 3 percent.
    The currency has rallied this week on stronger polling for
far-right Brazil presidential candidate Jair Bolsonaro. The
first round of voting will begin on Sunday.             
    A stronger Brazilian real        makes commodity exports
less attractive for holders of other currencies.             
     
    SUGAR
    * March raw sugar        settled up 0.16 cent, or 1.3
percent, at 12.23 cents per lb. after climbing to a 3-1/2-month
high of 12.38 cents.
    * Dealers noted Bolsonaro's policies may be more supportive
for the ethanol sector than those of his main rival. Cane is
used for both ethanol and sugar production in Brazil.
    * "That is a bullish contributor to the market; a
fundamental change in how they use sugar," said James Cordier,
president of Option Sellers in Tampa, Florida.
    * Dealers said speculators had cut a large net short
position in raw sugar during the last few days.
    * "This short position was always too large to be cleared
without making waves," Commonwealth Bank of Australia analyst
Tobin Gorey said.
    * December white sugar         settled up $5.20, or 1.6
percent, at $338.70 per tonne, peaking at $341.90, a 2-1/2-month
high.
    
    COFFEE
    * December arabica coffee        settled down 1.05 cent, or
1 percent, at $1.066 per lb., earlier rising to $1.1080, a
nearly two-month high for the contract.
    * Colombia produced 1.05 million 60-kg bags of washed
arabica coffee in September, down 14.5 percent from the same
month a year earlier, the National Coffee Growers' Federation
said.             
    * "The flowering season is kicking off quite well in Brazil.
Fundamentally, there will still be a lot of supply for the next
12 months," Cordier added.
    * November robusta coffee         settled down $16, or 1
percent, at $1,588 per tonne, earlier peaking at $1,617, its
highest since Aug. 30.

    COCOA
    * December New York cocoa        settled down $67, or 3.2
percent, at $2,019 per tonne.
    * December London cocoa         settled down 43 pounds, or
2.8 percent, at 1,498 pounds per tonne, earlier sinking 3
percent to 1,494.
    * "There are buyers, but more are waiting for prices to drop
even further," a New York soft commodities trader said.
    * Dealers continued to monitor the start of the Ivory Coast
main crop. Good conditions suggest ample supplies and strong
arrivals in coming months.
    

 (Reporting by Renita D. Young in New York and Nigel Hunt in
Lonodon; Editing by Susan Fenton and Diane Craft)
  
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