Top Stories
Top Stories
Wires

SOFTS-Coffee rebounds from multi-year lows, sugar rises

(Recasts with updated prices, market activity, comments, adds NEW YORK to dateline) NEW YORK/LONDON, May 9 (Reuters) - Coffee futures on ICE rebounded on Thursday, with arabica and robusta touching their highest levels in nearly a week, while raw sugar prices also rose.

COFFEE

* July robusta coffee settled up $55, or 4.3%, at $1,345 per tonne, with the most active second month trading in its highest volumes since December 2017.

* In the previous session, the contract fell to a nine-year low of $1,267.

* Dealers said fund selling had temporarily dried up, allowing the market to recover some ground. Still, bearish fundamentals remain as the Brazilian harvest picks up in pace amid an already oversupplied market.

* "This is just a correction in a bear market," said one U.S. trader.

* Top robusta producer Vietnam exported 2.39 million bags of coffee in April, down 16.7 percent from March, customs data showed.

* July arabica coffee settled up 2.3 cents, or 2.6%, at 90.85 cents per lb, pulling away from a 13-year low of 87.60 cents on Tuesday.

* "If we can close the week out above 89, that might be the first short-term technical sign that the market is trying to put in a bottom or a short-term low that it can rally from," said Shawn Hackett, president of Hackett Financial Advisors.

* Persistently low coffee prices have forced Colombian farmers out of the industry, with the country losing about 40,000 hectares of coffee lands in the past 18 months, the head of the coffee federation said on Wednesday.

SUGAR

* July raw sugar settled up 0.13 cent, or 1.1%, at 11.78 cents per lb, its second positive finish in five sessions.

* Dealers said the market had finally found some support after a recent decline that took the monthly contract to a low of 11.64 cents on Wednesday, its weakest since October 2018.

* Sugar supplies could swing into a deficit in the 2019/20 season, consultancy F.O. Licht said on Wednesday.

* Rising stocks in India remained a key bearish influence while nearby futures positions were trading at large discounts to further forward contracts, providing an incentive for holding excess supplies.

* ICE August white sugar settled up $3, or 0.9%, at $324.70 per tonne.

COCOA

* July New York cocoa settled up $31, or 1.3%, at $2,336 per tonne, after first falling to a nearly two-week low of 2,279.

* The market remains reasonably balanced, dealers said, with production and demand each seen rising in the 2018/19 season.

* July London cocoa settled up 2 pounds, or 0.1%, at 1,721 pounds per tonne.

(Reporting by Ayenat Mersie in New York and Nigel Hunt in London; Editing by Jan Harvey and Steve Orlofsky)