SOFTS-Raw sugar stabilizes after hitting lowest level in a year

LONDON, August 1 (Reuters)Raw sugar futures on ICE stabilized on Monday as the market continued to consolidate after hitting one-year lows last week. Coffee and cocoa rose during this time.

SUGAR

*October raw sugar SBc1 fell 0.2% to 17.51 cents per pound at 1229 GMT. The contract lost 6.9% in July, hitting a one-year low of 17.32 last Wednesday.

* Speculators moved from a net long to a net short position in raw sugar in the week to July 26, selling 68,538 contracts to build a net short position of 43,551 lots.

* Dealers said speculators seemed happy to keep their position short for the time being, although they would likely buy back or hedge their position if macro signals improve.

* Global equities hit seven-week highs on Monday, buoyed by strong corporate earnings and falling expectations of sharp interest rate hikes, although oil fell amid weak factory data in China and Japan weighed on the demand outlook. MKTS/GLOBWHERE

* Falling energy prices tend to weigh on sugar by prompting sugar cane factories in Brazil, the largest producer, to increase sugar production at the expense of ethanol, a biofuel made from cane.

* Brazilian oil company Petrobras PETR4.SA slashed gasoline prices to their lowest level since March last Thursday, a move that in turn is expected to weigh on ethanol and sugar prices.

* October white sugar LSUc1 fell 0.8% to $522.80 a ton. The contract lost 5.28% in July.

COFFEE

* September arabica coffee KCc1 rose 0.8% to $2.1910 per pound. The contract lost 7% in July, but gained more than 3.5% last week.

* Speculators increased their net long position in Arabica coffee by 1,169 contracts to 14,693 lots in the week to July 26.

* Arabica is supported by falling ICE-certified stocks – which are at their lowest in more than 20 years KC-TOT-TOT – and is concerned that this year’s harvest for the Brazilian producer will be slightly lower than initially forecast. COF/SURVEY

* September robusta coffee LRCc1 0.7% to $2,044 a ton.

COCOA

* September New York Cocoa CCc1 rose 0.7% to $2,390 a ton.

* September London Cocoa LCCc1 increased by 0.7% to 1,716 pound sterling a ton.

(Report by Maytaal Angel Editing by Bernadette Baum)

(([email protected](00442075429105)(Reuters email: [email protected])))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.