Raw sugar turns lower, robusta coffee jumps

Raw sugar futures on ICE turned lower on Tuesday with the market back on the defensive after a two-day rally as the focus returned to an improving crop outlook and the prospect of a 2017/18 global surplus. Robusta coffee surged, boosted partly by gains in the New York-based arabica market on Monday when London contracts were closed for a public holiday.
July raw sugar settled down 0.3 cent, or 1.9 percent, at 15.88 cents per lb. Dealers said the technical correction above last week's one-year low appeared to have run out of steam as sentiment on supplies remained bearish. "We expect more producer hedging as the crop progresses in CS (Center-South) Brazil and we also do not discount funds going shorter in the face of an ever improving outlook for production," said Sucden Financial senior trader Nick Penney.
"There's still huge pricing against July that needs to be done by producers. Some producers lifted their hedges when prices went up," one US trader said. August white sugar settled down $6.90, or 1.5 percent, at $452.60 per tonne. July robusta coffee futures settled up $49, or 2.5 percent, at $1,995 per tonne. Dealers said the fund long liquidation that took the second-position contract down more than 9 percent in April has abated, allowing the market to regain some ground.
July arabica coffee settled up 0.4 cent, or 0.3 percent, at $1.3625 per lb. Prices fell as early harvest conditions in top grower Brazil were forecast to improve, with meteorologist MDA Information Systems calling for predominantly dry conditions through the next six to 10 days. London cocoa prices were lower as the market adjusted to losses in New York on Monday, while the firm British pound added additional pressure, traders said.
July London cocoa settled down 21 pounds, or 1.5 percent, at 1,414 pounds per tonne. July New York cocoa settled down $7, or 0.4 percent, at $1,805 per tonne. Hot weather and insufficient rainfall last week in top grower Ivory Coast's eastern cocoa regions are feeding concerns of a poor mid-crop harvest, farmers said. Higher year-over-year bean arrivals in Ivory Coast ports, however, kept market sentiment bearish, traders said. Production at Euromar Commodities GmbH's plant in Germany could resume in coming days, administrator Rolf Rattunde said, after ECOM was approved to buy the cocoa grinder.