Top Stories
Top Stories
Wires

SOFTS-Raw sugar sets two-week low ahead of July expiry; arabica up

(Updates prices and market activity; adds comments, NEW YORK to dateline) NEW YORK/LONDON, June 24 (Reuters) - Raw sugar futures on ICE inched higher after dipping to a two-week low on Monday with dealers focused on the expiry of the July contract later in the week, while arabica coffee prices jumped.

SUGAR

* July raw sugar settled up 0.05 cent, or 0.4%, at 12.27 cents per lb after setting a more than two-week low of 12.11 cents.

* There appeared to be little appetite to take delivery of sugar against the July contract which expires on Friday, dealers said.

* "The looming expiry of July NY (raws) will probably include Central Americans and Mexican deliveries, which may deter potential receivers and anyway implies that there is sugar nobody wants," broker Marex Spectron said in a report.

* Still, the July contract's discount to October <SBV9-U9> narrowed to settle at -0.20 cent.

* Selling by Thai producers is also seen limiting the short-term upside potential, dealers said.

* August white sugar settled down $1.60, or 0.5%, at $323 per tonne.

COFFEE

* September arabica coffee settled up 2.35 cents, or 2.3%, at $1.03 per lb, after climbing to a more than two-week high of $1.0380.

* Technical buying accelerated as the contract broke through resistance around the $1.02 level.

* This was the third straight session that the contract settled above its 100-day moving average, after settling below it for the preceding five sessions.

* Dealers noted some seasonal strength to the market, with top-grower Brazil in its winter season, while a firmer Brazilian currency was also supportive.

* The Brazilian real was at its strongest against the U.S. dollar in about three months on Monday before retreating.

* A stronger real can discourage producer selling of dollar-denominated commodities.

* Coffee stocks held in European ports rose 2.0% in April, European Coffee Federation (ECF) data showed on Monday.

* September robusta coffee settled up $8, or 0.6%,

at $1,422 per tonne.

COCOA

* September New York cocoa settled down $15, or 0.6%, at $2,487 per tonne.

* September London cocoa settled down 12 pounds, or 0.7%, at 1,832 pounds per tonne.

* The market had temporarily lost upward momentum as the outlook of the mid-crop in top-grower Ivory Coast improved, dealers said.

* Ivory Coast's cocoa mid-crop is expected to reach a record 600,000 tonnes this season, exporters and pod counters said on Friday, up 20% from the previous season.

* Ivorian port arrivals reached 2.076 million tonnes between Oct. 1 and June 23, exporters estimated, up about 12% year on year.

(Reporting by Ayenat Mersie in New York and Nigel Hunt in London; Editing by Ed Osmond and Richard Chang)