Raw sugar futures tumbled Thursday on speculative sales on profit-taking after hitting near a five-month high in the previous session. Cocoa and arabica coffee futures also fell, as the softs complex also came under pressure from a firm dollar. Key October sugar futures fell 1.22 cents, or 4.03 percent, to close at 29.02 cents per lb, with the session low at 28.85 cents.
Market tumbles on profit-taking after spot sugar jumped to its highest intra-day level since late February. Consumer buying seen drying up if market stays over 30 cents. "I don't think demand's going to be at 30," said Newedge USA sugar analyst Alex Oliveira. Traders said sugar also pressured by estimated cane crush in No. 1 producer Brazil at 533.5 million tonnes, higher than trade belief it could drop below 530 million.
September arabica coffee futures dropped 5.60 cents, or 2.12 percent, to finish at $2.5835 per lb. Market hands back all of its gains from previous session. Firm dollar pressures bean values. Receding threat of frost in top producer Brazil kept coffee on the defensive.
"We could consolidate here while waiting for more news in this market," a dealer said. Key September cocoa futures shed $14 to end at $3,156 per tonne. Market digested news that Europe's second quarter cocoa grind rose 8.3 percent from the same period a year ago to 355,593 tonnes. North American grind data due out at 4 pm EDT (2000 GMT). Grindings may be up 5-10 percent - brokers. Cocoa weaker on follow-through investor sales and firm dollar - brokers. Market fundamentals seen bearish given ample supplies from top producer Ivory Coast.
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