October raw sugar settled down 0.17 cent, or 1.5%, at 11.47 cents per lb, after dipping to 11.41, its lowest level since Aug. 8. The market remained weighted by excess near-term supplies, dealers said, while a smaller than expected increase in the speculative net short position in the weekly CFTC report also added pressure.
"The fact that the speculative part of the market has not substantially increased its short may be taken as being bearish as it means they still have ammunition left," Nick Penney, senior trader at Sucden Financial, said in a market note. The market was anticipating an announcement from India that it would be extending its export subsidy system until September 2020, dealers said.
Marex Spectron said in a report that a maximum of 6 million tonnes would be subsidized, up from 5 million tonnes last year, while the scheme would now include an ocean freight subsidy and a marketing fee. October white sugar settled down $3.70, or 1.2%, at $310.40 a tonne. December arabica settled down 1.55 cents, or 1.6%, at 94.80 cents per lb, after slipping to 94.70, its lowest level since May 23.
A weaker Brazilian real added pressure to a market already on the defensive following a massive harvest in Brazil last year, dealers said. The market was anticipating another large harvest there this year, despite it being an off-year in the crop's biennial cycle. November robusta settled down $14, or 1%, at $1,319 a tonne.
December New York cocoa settled up $4, or 0.2%, at $2,191 a tonne, pulling away from the nearly five-month low of $2,170 hit in the previous session. This was the contract's first positive finish in five sessions. The contract has shed 8.7% so far this month, with the market pressured as the weather in top-growing region West Africa has improved, boosting the prospect of strong future supplies.
Rains last week in most of Ivory Coast's cocoa growing regions were below average, but dew and good soil moisture content augured well for the next October-to-March main crop, farmers said. December London cocoa settled up 6 pounds, or 0.4%, at 1,717 pounds a tonne.