Raw sugar, arabica coffee hit one-week high before retreating

Raw sugar and arabica coffee prices on ICE hit one-week highs before falling, as short-covering rallies dried up and the Brazilian real gave up earlier gains, dealers said. July raw sugar settled down 0.06 cent, or 0.5%, at 11.72 cents per lb, after touching a one-week high of 12.15 cents earlier in the session.
On the week, the contract lost 2.4%, its third straight negative weekly finish. Broad economic concerns, with the United States raising tariffs on Chinese goods, pressured the sugar market, dealers said. Rising sugar stockpiles in India were also a bearish influence, dealers said. A firmer currency in top-grower Brazil earlier in the session and short-covering helped encourage early gains, dealers said.
The market also got some support from bullish Brazilian data, dealers said. Mills in Brazil's main center-south cane producing region produced 38% less sugar in April, the first month of the new crop year, compared to the same month a year ago, industry group Unica said. Dealers were closely anticipating this week's commitment of traders report, due to be published later on Friday, and were expecting it to indicate a significant increase in the speculative net short position.
ICE August white sugar settled down $1.10, or 0.3%, at $323.60 per tonne. July arabica coffee settled down 0.05 cent, or 0.1%, at 90.80 cents per lb, after hitting a one-week peak of 91.40 cents. On Tuesday, the contract crashed to a 13-1/2-year low of 87.60 cents. July robusta coffee settled up $19, or 1.4%, at $1,364 per tonne, after hitting a one-week high of $1,372.
On Wednesday robusta fell to a nine-year low of $1,267. Still, on the week, robusta gained 1.4%, following six straight weeks of losses. Both coffee markets continued to be pressured by oversupply and the Brazilian harvest, which is now gathering pace. Brazil exported 2.717 million 60-kilo bags of green coffee in April, up 30.3% year on year, industry group Cecafé said.
July New York cocoa settled down $24, or 1%, at $2,312 per tonne. On the week, the contract declined 2.7%, its worst weekly performance in over two months. July London cocoa settled down 11 pounds, or 0.6%, at 1,710 pounds per tonne. The contract lost 3.1% on the week. Still, dealers see the cocoa market as well-balanced, with strong production figures from top-grower Ivory Coast being mostly offset by signals of strong global demand.