Sugar rises 19% for the week to 7-month peak, coffee tumbles
Adds comments on coffee, sugar; updates prices
NEW YORK, Sept 20 (Reuters) -Raw sugar futures jumped more than 3% on Friday to gain 19.2% for the week, the highest weekly price increase since 2008, as speculators rushed to buy following a breach of technical trade levels prompted by worries over Brazil's supplies.
SUGAR
* October raw sugar SBc1 settled up 0.73 cent, or 3.3%, at 22.66 cents per lb, having hit the highest price in nearly seven months at 23.13 cents.
* "Prices (are) now above all key technical indicators (and) speculators have plenty of room to push the market higher," said Stephen Geldart, associate director of broker and supply-chain services provider Czarnikow.
* He noted most analysts think sugar will be under-supplied in the first quarter, and that this week's price action could open the door for a year-end rally towards 24 cents.
* Trader Wilmar WLIL.SI cut its projection for Brazil's sugar production to a range between 38.8 million and 40.8 million metric tons on Thursday from its initial estimate of 42 million tons.
* Brazil is facing its worst drought, according to government data. The excessive dryness worsened the outlook for this year's and next year's crops.
* December white sugar LSUc1 rose 2.9% to $584.90 per ton, having hit its highest since early July at $590.30.
COFFEE
* December arabica coffee KCc2 settled down 10.9 cents, or 4.2%, at $2.5075 per lb, extending the market's retreat from a 13-year high on Monday.
* Dealers said some showers over Brazil's coffee belt, and a forecast for more, was a major factor in the price fall.
* "If rains arrive into October we will see some of that weather-premium risk come out of the market," said a U.S.-based broker.
* The GFS model predicts rains for south Minas Gerais in Brazil this month and early in October.
* Brazil's 2024 coffee crop has come in 0.5% below last year's levels and far below a May forecast, food-supply agency Conab said.
* November robusta coffee LRCc2 fell 3.6% at $5,059 a ton, having hit its highest in nearly 50 years on Monday.
COCOA
* December New York cocoa CCc1 settled down $92, or 1.2%, to $7,658 a ton.
* Cocoa has stabilised at prices well below peaks set in April as favourable weather has improved the outlook for the 2024/2025 crops in West Africa.
* March London cocoa LCCc2 fell 0.5% to 4,583 pounds per ton.
Reporting by Maytaal Angel and Marcelo Teixeira; editing by David Evans and Rod Nickel
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