Raw sugar hits 7-week low as supply prospects improve, cocoa rallies
Updates with comments and closing prices
NEW YORK, July 22 (Reuters) - Raw sugar futures on ICE hit a seven-week low on Monday amid improved supply prospects, while cocoa rallied following Friday's slide as trade remained volatile.
SUGAR
* October raw sugar SBc1 settled down 0.36 cents, or 1.9%, at 18.30 cents per lb, having closed down 2.8% last week. The contract hit a seven-week low at 18.25 cents/lb earlier.
* Dealers cited improved crop prospects in the Northern Hemisphere amid extremely favourable monsoon rains.
* Some analysts raised their projections for global sugar production last week.
* Brazil weather forecast is also indicating some rains next week, which could help the tail end of the crop.
* ICE raw sugar speculators increased their net short position by 1,303 contracts to 7,857 in the week to July 16, data showed.
* October white sugar LSUc1 fell 1.5% at $533.10 a metric ton.
COCOA
* September London cocoa LCCc1 settled up 504 pounds, or 8%, to 6,842 pounds ($8,837.13) per ton, having closed down 4.3% on Friday.
* Dealers noted that for the reporting regions Europe, Asia, North America, Brazil and Ivory Coast, the second quarter cocoa grind, a measure of demand, fell 4.4% combined.
* Still, the market remains tight considering this season's extremely poor crop in top producers Ivory Coast and Ghana.
* Citi upgraded its rating on Swiss industrial chocolate maker Barry Callebaut BARN.S as it sees earnings upside on potentially better cocoa crops next season.
* September New York cocoa CCc1 rose 9.2% to $8,398 a ton.
COFFEE
* September arabica coffee KCc1 settled up 4.85 cents, or 2%, at $2.4305 per lb, having lost 4.2% last week.
* Dealers said the market remains supported by limited production overall.
* "The global S&D (supply and demand) situation is tight, and this time Brazil can not come to the rescue," said a broker at an international trading house citing reports of smaller-than-expected crop in the world's top grower.
* September robusta coffee LRCc2 rose 1.1% at $4,581 a ton, but remained some way off its recent record high of $4,681.
($1 = 0.7742 pounds)
Reporting by Maytaal Angel and Marcelo Teixeira; Editing by Susan Fenton and Mohammed Safi Shamsi
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