 "Sugar dips on Brazil crop outlook, India tax; New York cocoa firms
| Reuters")
NEW YORK/LONDON (Reuters) - Raw sugar futures on ICE eased on Wednesday despite a weak U.S. dollar, as prices were pressured by chart-based sell signals, prospects of a big Brazilian crop and a higher Indian import tax.
New York cocoa rose on the firm pound GBP= , but failed to breach the prior session’s seven-week high, while the coffee markets were little changed.
Raw sugar fell on bearish fundamental and technical factors, despite the sharply lower dollar .DXY, which typically supports dollar-traded commodities.
May raw sugar SBc1 settled down 0.08 cent, or 0.6 percent, at 13.09 cents a lb, after trading as low as 12.85 cents. Open interest dropped by just 8,555 lots to 57,780 lots on Tuesday, representing more than 2.9 million tonnes of sugar ahead of expiry on Thursday.
Traders were expecting a record delivery of 1.5 million tonnes or higher. The largest delivery, according to ICE data dating back to 1989, was some 1.4 million tonnes against the October 2013 contract.
“I’m not sure the large delivery would be bullish, it’s a sign of a difference in opinion in the market,” said a European analyst, adding that “we think there’s a lot of sugar still around.”
News of a higher Indian sugar import tax weighed on prices as it signalled weaker international demand for the sweetener, weighing on prices. Expectations for a large Brazil crop also added pressure.
“These are all variables that are feeding into the overall headline issue that there is supply,” said Dan Pavilonis, senior market strategist for RJO Futures in Chicago.
“To see it not up today with such a sell-off in the dollar just tells me this is a really weak market.”
Most active raw sugar July futures SBN5 closed down 0.07 cent, or 0.05 percent, at 13.15 cents per lb, with technical resistance at the 50-day moving average at 13.20 cents.
The May/July spread SB-1=R narrowed to a discount of 0.01 cent per lb from 0.05 cent on Tuesday.
August white sugar LSUQ5 closed down $1.60, or 0.4 percent, at $374.90 a tonne.
In cocoa, the benchmark New York contract CCc2 closed up $17, or 0.6 percent, at $2,941 a tonne, while London July cocoa LCCN5 ended down 2 pounds, or 0.1 percent, at 1,987 pounds a tonne.
July arabica KCN5 ended up 0.45 cent, or 0.3 percent, at $1.39 per lb, while July robusta coffee futures on ICE LRCc2 closed up $4, or 0.2 percent, at $1,776 a tonne.
(Additional reporting by Chris Prentice in New York; Editing by Gareth Jones, editing by David Evans and David Gregorio)
This story has not been edited by Firstpost staff and is generated by auto-feed.
 "Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty")
 "Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched")
 "Who is CP Radhakrishnan, India's next vice-president?")
 "Israel informed US ahead of strikes on Hamas leaders in Doha, says White House")
 "Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty")
 "Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched")
 "Who is CP Radhakrishnan, India's next vice-president?")
 "Israel informed US ahead of strikes on Hamas leaders in Doha, says White House")
