Raw sugar rallies on spec buying, Brazil crop; cocoa falls
Updates with closing prices
NEW YORK, July 25 (Reuters) - Raw sugar futures on ICE rallied on Thursday on strong fund buying earlier in the session, and a boost from a bullish Brazil crop report, recovering after a 20-month low in the previous session. Cocoa fell, while coffee closed up.
SUGAR
* October raw sugar SBc1 settled up 0.75 cents, or 4.2%, at 18.66 cents per lb, having hit a 20-month low of 17.86 cents/lb on Wednesday.
* Dealers said the market had bebcometechnically oversold after falling for seven consecutive sessions, and was ripe for an upward correction.
*"Funds have been covering and it has taken much less volume to push it up than it took to force it down," said a U.S.-based broker about the Thursday session.
* Smaller-than-expected sugar production in Brazil gave an additional boost to the market around mid-session.
* Brazil's centre-south region produced 2.94 million tons in the first half of July, a 9.7% drop on a yearly basis, industry group UNICA said. The figure was far below estimates.
* Sugar cameunder pressure recently fromimproved crop prospects in the northern hemisphere amid favourable monsoon rains, though there are concerns over yields and the amount of cane allocated to sugar production in top producer Brazil.
* October white sugar LSUc1 rose 1.8% at $531.40 a metric ton.
COCOA
* September London cocoa LCCc1 settled down 282 pounds, or 4.2%, to 6,395 pounds per ton.
* Nestle NESN.S, the world's biggest packaged food company, lowered its sales growth outlook as the maker of KitKat bars had to slow its pace of price hikes because consumers have become increasingly cost-conscious.
* Cocoa output in Indonesia, the world's fourth biggest exporter, is set to fall again this year as the effects of last year's El Nino weather pattern linger.
* September New York cocoa CCc1 fell 5.1% to $7,805 a ton.
COFFEE
* September arabica coffee KCc1 settled up 3.55 cents, or 1.5%, at $2.347 per lb, having hit a near three week low of $2.2750 earlier.
* Dealers expect July exports from top producer Brazil to be near record levels, following the quick pace of the 2024 harvest.
* September robusta coffee LRCc2 rose 1.6% at $4,395 a ton.
* Coffee prices in Vietnam fell this week amid thin end of season trade volumes.
Reporting by Maytaal Angel and Marcelo Teixeira; Editing by David Evans, Mark Potter, Shailesh Kuber and Mohammed Safi Shamsi
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