Cocoa steadies after Monday's blistering rally; coffee, sugar fall
LONDON, July 23 (Reuters) -Cocoa prices steadied on Tuesday following a blistering rally of nearly 10% in the prior session, with trade remaining volatile amid thin volumes, and the market underpinned by a steep supply deficit.
Sugar and coffee prices slipped meanwhile.
COCOA
* September London cocoa LCCc1 edged down 0.2% to 6,826 a metric ton at 1149 GMT, having soared 8% on Monday.
* Swiss chocolate maker Lindt & Spruengli LISN.S reported a 7% jump in half-year organic sales as customers bore the brunt of the historically high cocoa prices. The firm also confirmed its full-year outlook for 6-8% organic sales growth.
* BMI, a unit of Fitch Solutions, said the global cocoa grind, a measure of demand, fell 4.2% in the second quarter versus the first, its smallest decrease over the past five years.
* "We expect a slow-down in cocoa grindings due to the high prices, although this could be more limited than previously expected given the apparent market resilience," BMI said.
* "Cocoa production in West Africa in 2024/25 will be a crucial factor affecting demand as a fourth consecutive deficit would likely pressure bean processing," it added.
* Cocoa arrivals at ports in top grower Ivory Coast were down 27.2% between Oct. 1 and July 21 versus the same period a year ago.
* September New York cocoa CCc1 fell 0.9% to $8,327 a ton, having rallied 9.2% on Monday.
SUGAR
* October raw sugar SBc1 fell 0.4% to 18.23 per lb, having hit a seven-week low at 18.22.
* Brazil's sugar production in 2024/25 (April-March) was revised down by 300,000 metric tons on Monday to 41.3 million tons due to lower-than-expected cane allocation to produce sugar and poor cane quality, broker Hedgepoint Global Markets said.
* Against this, however, are improved crop prospects in the Northern Hemisphere amid favourable monsoon rains, with some analysts raising their projections for the upcoming 2024/25 season.
* October white sugar LSUc1 fell 0.5% to $530.60 a metric ton.
COFFEE
* September arabica coffee KCc1 fell 0.6% to $2.3985 per lb, having settled up 2% on Monday.
* September robusta coffee LRCc2 fell 1.1% at $4,530 a ton.
($1 = 0.7742 pounds)
Reporting by Maytaal Angel
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