© Reuters. SOFTS-NY cocoa hits 4-1/2 month low as crop outlook brightens
(Adds comment, updates prices)
LONDON, Aug 13 (Reuters) – New York cocoa futures fell to a 4-1/2 month low on Tuesday as favourable weather conditions in West Africa improved the crop outlook, while coffee and sugar prices rose.
* December New York cocoa CCc2 fell $27, or 1.2% to $2,218 a tonne by 1423 GMT, having hit a 4-1/2 month low of $2,217.
* “The main factor driving prices down is the weather. On the demand side, acceleration in grindings growth is expected but at the moment we don’t see any signs of that,” said Rabobank analyst Carlos Mera.
* Cocoa arrivals at ports in top grower Ivory Coast reached 2.138 million tonnes between Oct. 1 – Aug. 4, exporters estimated last week, up from 1.972 million tonnes during the same period last season. December LCCc2 was down 19 pounds, or 1.1%, to 1,753 pounds a tonne.
* September arabica coffee was up 1.4 cents, or 1.5% at 95.15 cents per lb, after falling nearly 4% to an 11 week low on Monday.
* Dealers said the market was supported by a rebound in Brazil’s real currency . A stronger real discourages producer selling by making prices less attractive in local currency terms.
* A large crop in Brazil and the potential for a record harvest in 2020 continued, however, to keep a lid on prices.
* September robusta coffee was up $17, or 1.3%, at $1,287 a tonne.
* October raw sugar was up 0.16 cents, or 1.4% at 11.72 cents per lb, also buoyed by a stronger Brazilian real.
* Gains were capped by concerns about excess nearby supplies and the potential for a large delivery against the October contract.
* Brazil’s 2019-20 centre-south sugar output is seen at 25.5 million tonnes versus 24.18 million tonnes in a previous forecast, said Archer Consulting. An improvement in India’s monsoon also means the country’s production is likely to bounce back in 2020/21. October white sugar was up $2.70, or 0.9%, at $316.70 a tonne.
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