Coffee prices steady near peaks, cocoa extends slide
Updates prices
LONDON, July 17 (Reuters) -Coffee prices steadied near recent peaks on Wednesday, underpinned by supply jitters in top producers Brazil and Vietnam, while cocoa prices continued their descent.
COFFEE
* September arabica coffee KCc2 edged up 0.1% to $2.4375 per lb at 1356 GMT, having hit a2-1/2 year high of $2.5530 last week.
* Dealers noted that exporters in top arabica producer Brazil are in no rush to sell despite the weak Brazilian real BRL=, which usually tempts them to ship dollar-priced coffee because it raises their returns in local currency terms.
* They cited logistical challenges out of Santos port as boosting prices, coupled with increased concerns over climate change due to repeated, prolonged adverse weather incidents in the country.
* The current crop in Colombia, the world's top washed arabica producer, has also disappointed, they added.
* September robusta coffee LRCc2 fell 0.9% to $4,565 a ton, having set a record high of $4,681 last week.
* Dealers said rainfall in top robusta producer Vietnam has increased significantly in July.
* The market remains concerned over supply, however, following lacklustre exports from Vietnam and Brazil, the world's third largest exporter, and an earlier drought in Vietnam that damaged the crop.
COCOA
* September London cocoa LCCU4 fell 1.9% to 6,397 pounds per ton, having settled down 7.4% on Tuesday.
* Dealers said the market remains hopeful that improvedweather in top producer Ivory Coast will boost next season's crop.
* Second-quarter grind data due from North America and Asia in the next few days will in the meantimeprovide a further indication of theextent to which high prices have curtailed demand.
* Ivory Coast's cocoa grind, a measure of demand, fell 25.9% year-on-year in June to 45,172 metric tons.
* September New York cocoa CCc1 fell 0.6% to $7,800a tone, having closed 8.7% lower on Tuesday.
SUGAR
* October raw sugar SBc1 fell 0.9% to 19.44 per lb, having settled 0.7% lower on Tuesday.
* October white sugar LSUc1 fell 0.6% to $556.30 a ton.
Reporting by Maytaal Angel; Editing by Krishna Chandra Eluri and Tasim Zahid
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