Arabica coffee rallies on Brazilian weather; raw sugar steadies
LONDON, July 5 (Reuters) -Arabica coffee futures on ICE rallied on Friday, lifted by concerns over supply prospects in top producer Brazil, while raw sugar steadied below this week's 2-1/2 month peak.
COFFEE
* September arabica coffee KCc2 rose 3.8% to $2.3270 per lb by 1219 GMT, having earlier touched its highest in 1-1/2 weeks at $2.3290.
* Dealers said arabica is being boosted by dry weather in Brazil, with some smaller than usual beans being observed as a likely consequence.
* The Brazilian real currency BRL=, meanwhile, has been clawing back some of its recent losses, deterring exporters from selling dollar-priced coffee by lowering their returns in local currency terms.
* The harvest in Brazil is progressing well, however. Brazil exported 203,278 metric tons of green coffee in June, up from 138,686 tons a year earlier, data showed.
* September robusta coffee LRCc2 rose 1.4% to $4,212 a ton.
* Supplies in top robusta producer Vietnam remain tight, boosting prices by ensuring exports will remain comparatively low.
COCOA
* September London cocoa LCCc2 rose 3.2% to 6,453 a ton, having lost 3% on Thursday.
* Cocoa remains extremely volatile amid thin liquidity but has settled into a range below recent record highs amid talk that the demand downtrend is accelerating in response to high prices.
* Second-quarter grind data, a measure of demand, will be released for Europe next week. Dealers said the market was keenly awaiting the grind data for north America a week later.
* September New York cocoa CCc2 edged up by 0.2% to $7,720 a ton.
SUGAR
* October raw sugar SBc1 was down 0.4% at 20.44 cents per lb, a day after hitting a 2-1/2 month high.
* Top producer Brazil exported 3.20 million tons of sugar in June, up from 2.87 million a year earlier, data showed.
* August white sugar LSUc1 fell 0.8% to $579.70 a ton.
Reporting by Maytaal Angel
Editing by David Goodman
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