SOFTS-Raw Sugar Slips as Ample Supplies Weigh, Robusta Firms

(Reuters) – Raw sugar futures fell on Tuesday, slipping from a four-week high touched a day earlier as weaker chart signals and fresh signs of ample global supplies weighed on sentiment.

SUGAR

* July raw sugar eased 0.26 cent, or 1.57 percent, to 16.25 cents per lb by 1104 GMT, after falling to a session low of 16.12.

* The contract rose to a four-week high of 16.59 cents in the previous session as heavy rains in top producer Brazil stoked concerns that harvesting might be delayed in the short term.

* However, dealers said the weather outlook was now improving, renewing worries about ample Brazil supplies and a global surplus in the 2017/18 season.

* Sentiment was also weighed by more potential supply from Pakistan, after the country’s Sugar Advisory Board recently recommended the export of as much as 1.2 million tonnes of additional surplus sugar.

* However, dealers noted higher prices in Pakistan mean the government would need to subsidize the sugar before the industry is able to export it to the global market.

* “I can’t imagine it’s going to flood out until more subsidies are promised,” one dealer said. “But what it does do is that this sugar is available. And that certainly presents a bit of a weight on the market.”

* Technicals also weighed on futures, with Monday’s close below key resistance undermining the outlook of higher prices, dealers said.

* August white sugar also fell $5.10, or 1.09 percent, to $461.80 a tonne.

COFFEE

* July robusta coffee rose $9, or 0.47 percent, to $1,934 a tonne, finally finding support after falling sharply on Monday and dipping to a 3-1/2 week low of $1,916 on Tuesday.

* “The market is struggling to find a footing,” one dealer said, adding industry appeared to have adequate cover and there had been some spillover weakness from the arabica market during the last few days.

* Dealers said there appeared to be a major fund long in the market which could liquidate if the recent downtrend were to continue.

* “The lower robusta goes, the greater the likelihood that the core fund long will capitulate,” one dealer said.

* July arabica rose 0.25 cents, or 0.19 percent, to $1.3085 per lb.

COCOA

* July London cocoa was unchanged at 1,566 pounds a tonne, while July New York cocoa slipped $5, or 0.25 percent, to $2,030 a tonne.