ICE sugar at 11-week low

Raw sugar futures on ICE fell to an 11-week low on Thursday, as it they were weighed down by expectations new data will show that favourable weather was speeding Brazil's harvest. Cocoa futures were little changed as historical price charts indicated the recent correction lower may continue, while arabica coffee was steady.
Raw sugar futures were down a shade ahead of data from Brazil's industry association Unica, which was due at 1700 GMT. "Unica's report detailing progress in the Brazil centre-south crush for the first half of August is due out this afternoon and is expected to be bearish, showing a substantial increase in cane tonnage crushed and perhaps an improvement in ATR (sucrose) content due to the improved weather conditions during the period," Nick Penney of brokerage Sucden Financial said.
Consultant Jonathan Kingsman said Brazil's main center-south region looks likely to crush 512 million tonnes of cane for the 2012-2013 season, 3.6 percent more on the year. Benchmark October sugar futures on ICE were down 0.15 cent, or 0.8 percent, at 19.79 cents a lb by 12:13 p.m. EDT (1613 GMT), after touching 19.70 cents, the lowest for the front month since June 8. "It's a tough combination to fight between bearish fundamentals, markets liquidating longs and attracting system short sellers," said Drew Geraghty, broker for ICAP North America in New Jersey.
Dry weather in July and August has quickened top sugar grower Brazil's cane crush and allowed mills to make up some of the ground lost to rain in May and June. White sugar October futures on Liffe fell $1.30, or 0.2 percent, to $550.00 per tonne. Cocoa futures were mixed and little changed as chart-based indicators displayed potential for further losses.
Liffe December cocoa futures settled down 1 pound at 1,583 pounds per tonne, the lowest settlement since July 27. ICE December cocoa futures finished up $5 at $2,385 per tonne, an inside session. Analysts noted the large speculative long position in US cocoa futures, the biggest it has been since the unrest in Ivory Coast in early 2011.
Arabica coffee was near unchanged in quiet summer dealings, with dealers saying that roasters were in no rush to by and waiting for lower prices before they increase their cover. Benchmark December arabica futures traded up 0.20 cent, or 0.1 percent, at $1.6230 per lb. In London's robusta market, dealers said some roaster interest was triggered by lower prices. November robusta coffee futures were down $39, or 1.9 percent, at $2,042 a tonne.