Raw sugar hits five-month peak, coffee slips further
Adds comments, closing prices
NEW YORK, Sept 19 (Reuters) -Raw sugar futures rose to a five-month high on Thursday, boosted by a deteriorating outlook for sugar production and the new cane crop in Brazil's center-south region, while coffee prices slipped further from recent multi-year highs.
SUGAR
* October raw sugar SBc1 settled up 0.77 cent, or 3.6%, at 21.93 cents per lb after setting a five-month high of 22.08 cents.
* Dealers said the market had been buoyed by a diminishing outlook for sugar production this year and forthe next cane crop (2025/26) in Brazil's center-south region following a prolonged dry spell.
* Yields for Brazil's 2024/25 sugarcane crop in the country's center-south region are down 7.4% through the end of August compared with last season, data from cane research firmCTC showed, amid dry weather and fires in the world's largest producer.
* Dealers noted strong short-covering action, mostly by funds, but also by some producers.
* December white sugar LSUc1 rose 2.4% to $568.60 a metric ton.
COFFEE
* December arabica coffee KCc1 settled down 2.75 cents, or 1.0%, at $2.6165 per lb, extending the market's retreat from a 13-year high on Monday.
* Dealers said the market was underpinned by a smaller-than-expected crop in Brazil this year and concerns that dry weather will curb production next year.
* Coffee production in Brazil stood below initial forecasts in 2024 as adverse weather conditions affected key crop development stages, national food supply agency Conab said on Thursday.
* November robusta coffee LRCc2 fell 1.6% to $5,248 a ton.
COCOA
* December New York cocoa CCc1 settled down $64, or 0.8%, to $7,750 a ton.
* Dealers said the market had stabilised at prices well below peaks set in April as generally favorable weather improved the outlook for the 2024/2025crops in West Africa.
* Increased investment in cocoa farms linked to high prices this year will, however, take time to impact supplies.
* "As a perennial tree, it can take three to four years for new cocoa trees to begin producing beans. Moreover, issues including diseases especially CSSVD (cocoa swollen shoot virus) and climate change persist and compound the problems faced by cocoa farmers," the International Cocoa Organization said.
* March London cocoa LCCc2 fell 1% to 4,605 pounds a ton.
Reporting by Nigel Hunt and Marcelo Teixeira; Editing by Janane Venkatraman, Emelia Sithole-Matarise and Paul Simao
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