Agricultural commodity markets diverged as agricultural headwinds in Brazil compounded existing global shortfalls for raw sugar, which settled higher at 19.47 cents per pound. Concurrently, arabica coffee slumped due to a weaker Brazilian real that spurred local hedging, alongside over 42,000 bags entering exchange certification pipelines. Robusta coffee also tracked lower as certified exchange reserves continued to build strongly. Meanwhile, cocoa prices were pressured even as analysts trimmed production forecasts for Ivory Coast due to moisture stress on crop loads.
Key points
Sugar supplies face severe worldwide tightening from Brazilian downpours alongside drough…: Sugar supplies face severe worldwide tightening from Brazilian downpours alongside drought in Europe and weak Indian monsoons.
Coffee prices are experiencing downward pressure as incoming warehouse supplies slow the…: Coffee prices are experiencing downward pressure as incoming warehouse supplies slow the pace of certified stock drawdowns.
A depreciating Brazilian currency is encouraging domestic producers to accelerate sales o…: A depreciating Brazilian currency is encouraging domestic producers to accelerate sales of dollar-denominated coffee futures contracts.
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NEW YORK, Oct 29 (Reuters) - Raw sugar futures on ICE rose on Thursday as supply prospects worsened with more excess El Nino-linked rains forecast in top grower Brazil, while arabica coffee hit a one-month low.
SUGAR
* Raw sugar settled up 0.13 cent, or 0.7%, at 19.47 cents per lb, extending its recovery from Monday's 5.6% Brazilian currency-driven selloff.
* Sugar production in Brazil's key center-south region fell 27.1% in the first half of October from a year earlier to 1.87 million metric tons, the Agriculture Ministry said on Wednesday.
* The country's sugar areas have been battling excess El Nino-linked rains, and more are forecast for this weekend and for next week.
* "Sugar has been supported since July by declining forecasts for global supply, with heat and drought damaging Europe’s beet crop and a lacklustre monsoon lowering expectations for India’s cane crop," added broker AMDIS.
* White sugar rose 0.4% to $527.60 a metric ton.
COFFEE
* ICE arabica coffee futures settled down 1.3 cents, or 0.5%, at $2.8545 per lb, having…
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