White sugar prices slip back after recent rally
LONDON, Sept 2 (Reuters) -White sugar futures fell sharply on Monday as funds scaled back a net long position while robusta coffee and London cocoa prices were also lower.
New York-based raw sugar, arabica coffee and cocoa contracts were closed on Monday due to a U.S. public holiday.
SUGAR
* October white sugar LSUc1 fell 2.5% to $532.90 a ton by 1302 GMT.
* Dealers said the market has lost some ground after rising sharply during the second half of August with funds beginning to trim a net long position.
* Dealers said sales by producers in Brazil had also picked up following the recent rally.
* The market, however, has derived some support from India's decision last week to allow sugar mills to use cane juice to produce ethanol in the new marketing year starting November 1.
* "This could prolong India's sugar export curbs, keeping the global market tight," ING said in a note.
COFFEE
* November robusta coffee LRCc2 fell 4% to $4,750 a ton, extending markets retreat from last week's peak of $5,180 which was the highest level in at least 16 years.
* Dealers said the market had become technically overbought after a surge in prices last month.
* Prices remained underpinned, however, by tight supplies and concern that extreme heat earlier this year could reduce the size of the harvest later this year in Vietnam.
COCOA
* December London cocoa LCCc2 fell 0.75% to 5,292 pounds a ton.
* Ghana will increase the state-guaranteed price paid to its cocoa farmers by nearly 45% for the 2024/25 crop season, two sources with knowledge of the price review told Reuters, to help boost their incomes and deter bean smuggling out of the country.
Reporting by Nigel Hunt; editing by David Evans
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