SOFTS-Arabica coffee falls to new three-week low, raw sugar slips

(Updates prices and market activity; adds comments, adds NEW YORK to dateline) NEW YORK/LONDON, June 18 (Reuters) - Arabica coffee futures on ICE fell on Tuesday to a fresh three-week low, as the market came under selling pressure ahead of front-month contract expiry, while raw sugar prices slipped and cocoa inched up.


* September arabica coffee fell 1.65 cents, or 1.7%, to 96.60 cents per lb, after falling to a three-week low of 96.35 cents.

* The coffee market was pressured by the ongoing roll

period, with first notice day for the July contract set

for Thursday, prompting some traders to roll out of or liquidate their positions.

* The September monthly contract's settle below 97.14 cents, the 62% Fibonacci retracement of its May 7 low and its June 4 high, was a bearish signal, dealers said.

* Fundamental factors continue to weigh down the coffee market, too, particularly oversupply in top-grower Brazil.

* September robusta coffee settled down $14, or 1%, at $1,372 per tonne. This was the contract's fourth consecutive negative finish.


* July raw sugar settled down 0.05 cent, or 0.3%, at 12.61 cents per lb. Prices hit a 1-1/2-month high of 12.78 cents on Friday, but have slipped in the past two sessions.

* Still, the monthly contract settled above its 100-day moving average, the fifth consecutive session that it has done so.

* The sugar market has been supported of late by dry weather

in India, a top sugar grower, and by surging corn prices ,

though these retreated on Tuesday.

* Still, Brazilian sugar mills are closely watching the 2019 U.S. corn crop for reduced harvests that could boost prices for the cereal, raising ethanol production costs there and opening room for Brazilian ethanol to gain U.S. market share.

* In that scenario, mills would heavily favor ethanol production at the expense of sugar.

* Some U.S. ethanol makers are considering buying corn from Brazil to guarantee supply as domestic crop prices are rising, the chief of the Renewable Fuels Association said.

* Elsewhere, the EU's crop monitoring service MARS lowered its yield estimate for sugar beet to 75.7 tonnes per hectare from 76.5 t/ha.

* August white sugar settled up 50 cents, or 0.2%, at $333.60 per tonne.


* September New York cocoa settled up $21, or 0.9%, at $2,500 per tonne, erasing the previous session's losses.

* September London cocoa settled up 10 pounds, or 0.5%, at 1,850 pounds per tonne.

* Cocoa prices hit 11-month highs last Wednesday as top growers Ivory Coast and Ghana announced plans to set a floor price for cocoa.

(Reporting by Ayenat Mersie in New York and Maytaal Angel in London; Editing by Lisa Shumaker)