Cocoa prices tumble below key technical level, raw sugar up

Cocoa futures on ICE fell around 3 percent on Thursday, dropping on chart-based selling as prices fell below the key 200-day moving averages, while raw sugar rose to a three-week high on diminishing crop prospects in Europe and Brazil.
October raw sugar settled up 0.2 cent, or 1.9 percent, at 10.57 cents per lb, after earlier rising to 10.69 cents, the highest since August 10.
The spot contract was on track to finish August up a slight 0.2 percent after rebounding above last week's 10-year low. This would be the first monthly rise since May.
Dealers said prices were supported by reduced crop prospects in Europe and Brazil, which should reduce the size of an expected global surplus in the 2018-19 season. The likelihood of another huge crop in India, however, was expected to limit price recovery.
Analyst Green Pool trimmed its forecast for an anticipated global sugar surplus in the 2018-19 season.
Ukraine's 2018-19 white sugar production is likely to fall between 1.9 million tonnes and 2 million tonnes, which would be down from 2.14 million tonnes the previous season, said Ukrainian sugar union Ukrtsukor.
October white sugar settled up $2.70, or 0.8 percent, at $324.30 per tonne.
The October whites premium over raws fell to around $90 after surging to a contract high near $93 the prior session on concerns about poor crop weather in Europe.
December arabica coffee settled down 0.25 cent, or 0.2 percent, at $1.0265 per lb.
The second position contract was on track to close August down more than 9 percent, which would mark its third straight monthly drop after it fell to a 12-year low last week.
Further weakening in the currency of top producer Brazil, which fell to a three-year low against the US dollar, attracted speculative selling and weighed on arabica prices, traders said.
November robusta coffee settled down $24, or 1.6 percent, at $1,522 per tonne, after falling to $1,515, the lowest since April 2016.
Futures fell along with coffee prices in No. 1 robusta grower Vietnam, where they hovered around their lowest level in more than two years, traders said. December New York cocoa settled down $74, or 3.2 percent, at $2,275 per tonne.
December London cocoa settled down 42 pounds, or 2.47 percent, at 1,659 pounds per tonne. Both contracts extended losses below their 200-day moving averages after those levels attracted technical selling, traders said.