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SOFTS-Raw sugar rallies after hitting nearly 3-month low in previous session


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NEW YORK/LONDON, May 13 (Reuters)Raw sugar futures on ICE rallied on Friday after hitting a nearly three-month low in the previous session, with dealers citing improved sentiment in broader financial markets and bets that the production of the first Brazilian producer will decrease this season. ORMKTS/GLOB

SUGAR

*July raw sugar SBc1 stood 0.53 cents, or 2.8%, at 19.17 cents a pound after hitting a nearly three-month low at 6:30 p.m. Thursday.

* Sentiment at the Citi ISO Datagro sugar conference in New York was mostly bullish, dealers noted, with chatter that Brazil should favor ethanol production this season over sugar. Both products are made from sugar cane.

* Archer Consulting sees the allocation of cane to sugar production drop to 43.8% from 45.2% previously.

* Egypt’s public grain buyer is seeking 50,000 tonnes of raw sugar cane from all origins under an international tender.

* South African sugar producer Tongaat Hulett’s TONJ.J Zimbabwean units have suspended advance payments to sugarcane growers, exposing them to possible cash flow problems.

* August white sugar LSUc1 rose $14.80, or 2.8%, to $535.70 per tonne.

COFFEE

* July arabica coffee KNc2 fell 1.4 cents, or 0.7%, to $2.139 a pound, after jumping 7.9% on Wednesday.

* Dealers said farmers in Brazil, the top producer, were reluctant to sell even at these improved price levels.

* A cold front is expected to advance over Brazil next week, keeping dealers on edge as last year’s frosts pushed coffee prices to their highest level since 2011.

* Most forecasters, however, do not expect coffee trees to be damaged by the cold spell despite below average temperatures for this time of year.

* July robusta coffee LRCc2 fell $18, or 0.9%, to $2,040 a tonne.

COCOA

* July Cocoa New York CCc2 rose $36, or 1.5%, to $2,469 a tonne after hitting a 5.5-month low at $2,411.

* Fitch Solutions said in a report that the Russian-Ukrainian war is weighing on consumer demand and spending on luxury goods like chocolate.

* Brazil processed 69,490 tonnes of cocoa between January and April, down 6.2% from the same period last year, industry group AIPC said on Friday.

* Cocoa July London LCCc2 rose 13 pounds, or 0.7%, to 1,779 pounds per ton.

(Reporting by Marcelo Teixeira and Maytaal Angel; Editing by Rashmi Aich, Mark Porter and Shailesh Kuber)

(([email protected]; +1 332 220 8062; Reuters messaging: [email protected]https://twitter.com/tx_marcelo))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.




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