US cocoa closed at a 2-1/2 month low on Wednesday, while raw sugar closed the day lower in thin dealings and arabica coffee was firm. The October raw sugar contract dropped 0.30 cent, or 1.62 percent, to close at 18.26 cents per lb. Trading from 18.18 to 18.65 cents.
Dealings light. Total volume traded near the close of business stood over 51,500 lots, down 42.74 percent from the 30-day average at 89,784 lots, according to preliminary data from Thomson Reuters. "I am longer-term bearish on (sugar)," said Jack Scoville, analyst with brokers The Price Futures Group. Some cash demand seen from countries such as Pakistan, but Scoville said "not much else is out there and I feel like the path of least resistance is eventually lower." Arabica coffee futures for September climbed 0.95 cents to finish at $1.7060 a lb, in rangebound dealings.
Heavy September/December spreading dominated volume ahead of spot contract's first notice day August 23, said traders. The spread continued to slowly widen, closing at $1.75 from $1.65 the previous session. ICE certified arabica stocks at 2,074,377 lots by August 10, up 1,132 bags from the previous day, marking the first climb since June 22, said ICE data. Benchmark December dropped $49, or 1.7 percent, to close at $2,881 per tonne, the weakest settlement since May 20.
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