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SOFTS-Arabicas drift from near 34-year high, sugar dips

Published 04/26/2011, 05:07 AM
Updated 04/26/2011, 05:12 AM
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LONDON, April 26 (Reuters) - ICE arabica coffee futures eased in early trade on Tuesday, after touching a 34-year high on April 20, while sugar eased in a range, pressured by ample supplies from Brazil and Thailand.

Below are highlights for the coffee, cocoa and sugar markets:

COFFEE

Arabica coffee futures on ICE eased, having touched a 34-year peak above the psychological $3 a lb on April 20, with losses limited by tight supplies of mild washed arabicas.

* ICE July arabica coffee was down 1.55 cent or 0.5 percent to $2.8925 per lb at 0809 GMT, near the 34-year high of $3.0250 a lb touched on April 20.

* Liffe July robustas were down $43 or 1.8 percent at $2,392 a tonne at 0812 GMT.

Vietnam's April coffee exports jumped an estimated 30.3 percent from the same month in 2010 to 155,000 tonnes, or 2.58 million bags, exceeding market expectations, the agriculture ministry said.

COCOA

* Cocoa futures edged up in light volumes, underpinned by a softer dollar, with eyes on top producer Ivory Coast as dealers awaited fresh news about the condition of the mid crop.

* ICE second-month, July cocoa was up $12 or 0.4 percent to $3,072 per tonne at 0813 GMT, below a 32-year high of $3,775 per tonne touched on March 4.

* New York cocoa remains technically neutral, rangebound between $3,054 and $3,131 per tonne, according to Reuters technical analyst Wang Tao.

SUGAR

* Raw sugar futures on ICE eased, weighed by expectations of ample production of the sweetener from Brazil and Thailand, and the possibility of further unrestricted exports by India.

* ICE May raw sugar futures fell 0.38 cent or 1.5 percent to 24.69 cents a lb at 0814 GMT. London August white sugar was down $11.20 or 1.75 percent to $627.90 per tonne.

* India may consider additional unrestricted sugar exports after receiving final output figures for the current season from October, Food Secretary B.C. Gupta said on Tuesday.

* Brazil, the world's largest sugar exporter, could see its cane crop falling for the first time in 11 years this season as investments in renewal of fields were cut back and dry weather in 2010 slowed cane growth.

OTHER MARKETS

* Silver fell and Asian shares pulled back from recent three-year highs in a bout of profit-taking before the Federal Reserve meeting this week where investors are seeking clues on when it plans to begin exiting its ultra-easy monetary policy.

* The euro slipped after European Central Bank Governor Jean-Claude Trichet said he shares the view that a strong dollar is in the interest of the United States, a comment taken by some market players as showing frustration over the dollar's relentless fall and also an attempt to talk up the currency.

* U.S. crude futures fell more than $1 as investors reduced risk ahead of a meeting of the U.S. Federal Reserve and after Saudi Aramco's chief executive said the kingdom was not comfortable with current oil prices.

* European shares are set to fall tracking Wall Street and in Asia, as investors take a cautious stance ahead of the start of the Federal Reserve meeting.

* In the lightest volume session of the year, U.S. stocks fell on Monday after a lowered outlook from Kimberly-Clark increased concerns about higher commodity costs squeezing profits in coming quarters. (Reporting by David Brough; editing by xx xx)

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