Raw Sugar Falls to 5-Week Low, Arabica Ease

(Reuters) – Raw sugar futures on ICE fell to a five-week low on Wednesday, extending losses below technical levels that triggered sell-stops, while arabica coffee prices neared a one-month low amid a firm U.S. dollar and good harvest weather in top grower Brazil.

New York cocoa futures turned higher for the first time in seven sessions, bouncing up from a five-month low, while the London market rose above a five-week trough, as both markets lacked follow-through selling.

October raw sugar settled down 0.42 cent, or 2.2 percent, at 19.1 cents per lb.

“There has been a strong technical element to the move with sell stops being triggered as prices moved through lateral support levels of 19.31 and 19.15 (cents),” said Agrilion Commodity Advisers in a note.

The benchmark contract rose above 20 cents on Monday and Tuesday but failed to close above that key level on both days.

“The inability to close above 20 cents has not been constructive and we continue to believe that the 19 cent level is still vulnerable, potentially leading to the election of sell stops below and a potential test of 18.53,” said Nick Penney, a senior trader with Sucden Financial Sugar.

October white sugar settled down $6.50, or 1.2 percent, at $522 per tonne.

In coffee, arabica prices hovered above Monday’s one-month low.

September arabica settled down 0.4 cent, or 0.3 percent, at $1.412 per lb, while September robusta settled down $7, or 0.4 percent, at $1,804 per tonne.

“The Vietnamese export number for July was lower than expectations and was more indicative of lower demand because it’s the slow roasting season in the Northern Hemisphere,” said Shweta Upadhyaya, an agricultural commodities analyst with Agrimoney’s Global Coffee Monitor (GCM).

Vietnam, the world’s largest robusta producer, will export 17 percent more coffee in July versus a year ago, the government said.

London cocoa futures inched up, supported by the softer pound and poor West African mid-crops.

“Currency is adding a supportive element, while people are happy to see the market trade sideways,” one broker said.

September London cocoa settled up 10 pounds, or 0.4 percent, at 2,352 pounds per tonne, after tapping 2,334 pounds, the lowest level since June 24.

September New York cocoa settled up $6, or 0.2 percent, at $2,857 per tonne after falling to $2,840, the lowest level since late February.