SOFTS-Cocoa dips to seven-week low ahead of grind data; sugar up

  • Reuters
  • Commodities News
SOFTS-Cocoa dips to seven-week low ahead of grind data; sugar up
Credit: © Reuters.

(Updates with closing prices)

NEW YORK/LONDON, Oct 14 (Reuters) - London cocoa futures on ICE (NYSE: ICE ) fell to a seven-week low on Wednesday, weighed partly by a stronger pound, as the market waited to see if third-quarter grinding data would provide further evidence of weakening demand. GBP/

Raw sugar closed up but remained below a 7-1/2 month peak, hit on Monday.

COCOA

* December London cocoa LCCc1 ​​settled down 7 pounds, or 0.4%, to 1,636 pounds per tonne​. It touched a seven-week low of 1,628 pounds earlier in the session.

* Dealers said that third-quarter grind data would provide a short-term focus as the market looks for indications on the extent to which the COVID-19 pandemic has dented demand.

* European and North American third-quarter grind data is due to be issued on Thursday.

* A U.S.-based cocoa broker said the market expects grind data for North America to show a reduction of up to 3% compared to a year earlier.

* Ivory Coast rains have also improved the outlook for crops in the world's top producer. December New York cocoa CCc1 ​​settled up $10, or 0.4%, to $2,391 a tonne.

SUGAR

* March raw sugar SBc1 ​​settled up 0.19 cents, or 1.4%, at 14.20 cents per lb​​.

* Dealers said the market was consolidating just below a 7-1/2 month peak set on Monday, with the prospect of rains in Brazil over the next couple of weeks helping to stall the recent run-up, temporarily at least.

* "The weather forecasts are still giving rise to optimism and suggest that the coming weeks will bring the urgently needed rainfall," Commerzbank (DE: CBKG ) said in a note.

* December white sugar LSUc1 ​​settled down $0.20, or 0.1%, at $386.90 a tonne.

COFFEE

* December arabica coffee KCc1 settled down 0.5 cents, or 0.5%, at $1.096 per lb​​.

* Dealers continued to keep a close watch on conditions in Brazil and the extent to which rains will bring relief to crops.

* Coffee traders are struggling to ship cargos out of Brazilian ports because of a shortage of available containers or space in vessels to hold them, traders and analysts said. November robusta coffee LRCc1 settled up $27, or 2.2%, at $1,250 a tonne.

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