NOTew throughout, add closing prices, analyst comments on coffee
NEW YORK / LONDON, October 5 (Reuters) – Arabica coffee futures on ICE closed more than 4% on Tuesday as speculators liquidated part of their long position amid forecasts of heavy rains in the coffee fields of Brazil’s top producer.
Raw sugar closed following the rise in energy prices.
* Arabica coffee in December KCc1 closed down 8.45 cents, or 4.2%, at $ 1.919 a pound, after hitting a two-month high of $ 2.0685 in the previous session.
* Some speculators who bought coffee futures in previous sessions due to uncertainties over next season’s supplies have decided to liquidate part of this position as heavy rains fall on crops in Brazil in the next days.
* “On Friday we saw the OI (open interest) increase by a staggering 8.8,000 lots that appeared to be specs on top of the long ones, and this continued with an additional 1.2,000 lots Monday, “said Ryan Delany, chief analyst at Coffee Trading Academy, LLC.
* “However, it is difficult for the market to be very optimistic in a drought when it is raining and it is expected to continue to rain above normal,” he said.
* Refinitiv’s agricultural weather dashboard shows rains of up to 90 millimeters (3.54 inches) for next weekend in southern Minas Gerais, Brazil’s number 1 coffee region.
* The added moisture should help crop development for next year’s harvest, although more is needed.
* November Robusta coffee LRCc1 came in at $ 37, or 1.7%, at $ 2,111 per tonne.
* Mars raw sugar SBc1 rose 0.16 cents, or 0.8%, to 19.85 cents per pound as energy prices soared.WHERE
* Rising energy and fuel prices extend to renewable fuels and raw materials, dealers said.
* “Renewables catch a bid as crude continues to climb,” a US sugar broker said, adding soybean oil and palm oil futures were also up sharply.
* The global sugar supply balance is expected to improve in the 2021/22 season due to higher production in Asia and Europe, broker StoneX said on Tuesday.
* December white sugar LSUc1 rose $ 4.90, or 1.0%, to $ 507.50 a tonne.
* December New York cocoa CCc1 settled $ 3, or 0.1%, at $ 2,755 per tonne. The contract hit a 10-month high of $ 2,792 on Monday.
* December London cocoa LCCc1 dropped 10 pounds, or 0.5%, to 1,887 pounds per tonne.
(Reporting by Marcelo Teixeira and Maytaal Angel; Editing by David Goodman and Shailesh Kuber)
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