Cocoa extends losses, sugar rises

Cocoa futures on ICE extended their two-week tumble on Thursday as weak charts spurred technical selling, while raw sugar prices inched up to a seven-month high after data from Brazil was largely within expectations. Coffee prices jumped as traders continued to monitor dry conditions in many of Brazil's growing regions, which could reduce crop flowering in the world's biggest producer.
New York cocoa prices have dropped for 10 of the past 11 sessions, tumbling below their 100-day moving average and a key Fibonacci retracement level that triggered chart-based selling, traders said. New York December cocoa settled down $19, or 0.6 percent, at $3,060 per tonne after touching $3,035, the lowest since August 24. London December cocoa closed down 14 pounds, or 0.7 percent, at 2,093 pounds a tonne after touching 2,082 pounds, the lowest since early September.
Bimonthly data from sugar industry association Unica showed Brazil's main center-south cane belt crushed 40.47 million tonnes of cane in the second half of September, within expectations. "The results were in line with most people's expectations, which is why there has been no major price reaction," said James Liddiard, senior vice president at Agrilion consultancy in New York
"On a price parity/equivalency basis, sugar is currently giving better returns than ethanol at the moment." March raw sugar settled up 0.03 cent, or 0.2 percent, at 14.01 cents per lb, nudging up to 14.05 cents in late-day trading, the highest since late February. Total open interest jumped by more than 10,000 lots on Wednesday, after reaching a three-year low on Monday.
ICE December white sugar settled down $2, or 0.5 percent, at $386.70 per tonne. ICE arabica coffee rose but remained within the prior session's range with all eyes on 10-day forecasts for below-normal rainfall in key Brazilian growing areas, including top arabica region Minas Gerais. Trees need rain to ensure flowering. "It is too early to draw too many conclusions, because the flowering period lasts to December in Brazil," said Stefan Uhlenbrock, a senior soft commodities analyst with F.O. Licht.
December arabica coffee settled up 2.4 cent, or 1.9 percent, at $1.2845 per lb. Robusta coffee futures edged up with traders focused on expectations for a large crop in top grower Vietnam from around November, compounding a huge carryover of Vietnamese stocks. ICE November robusta coffee settled up $23, or 1.5 percent, at $1,582 per tonne.