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Arabica coffee falls, loses 7.7% in the week; raw sugar up

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NEW YORK/LONDON — Arabica coffee futures on ICE fell again on Friday, the fifth loss in as many sessions, on the way to a 7.7% price drop in the week and just shy of a 16-month low hit in the previous session.

COFFEE

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* March arabica coffee settled down 1.25 cents, or 0.8%, at $1.551 per lb. The contract hit the lowest price in 16 months on Thursday at $1.5675 per lb.

* Dealers noted the overall trend remained bearish with the market falling by more than 30% since late August, partly due to an improving outlook for Brazil’s 2023 harvest and the expectation of higher ICE certified arabica stocks.

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* “It’s complicated to digest a super oversold market that keeps adding more and more, even if it’s not led by origins,” said a coffee broker, adding that selling from farmers has been minimal. “Specs continued to dominate the market,” he said.

* CFTC data on Friday showed funds increased their bearish bets in arabica.

* January robusta coffee fell $7, or 0.4%, to $1,811 a tonne.

SUGAR

* March raw sugar settled up 0.32 cent, or 1.6%, at 20.05 cents per lb, climbing back towards a seven-month peak of 20.48 cents set on Wednesday. The contract gained 2% in the week.

* Dealers said the market was supported partly by a recovery in Brazil’s real currency as the incoming government sought to assuage fears about fiscal spending.

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* Speculators added more than 70,000 lots to their long position in raw sugar.

* March white sugar rose $9.90, or 1.9%, at $543.30 a tonne, but the contract lost 4% in the week.

COCOA

* March New York cocoa rose $9, or 0.4%, to $2,456 a tonne. It lost 2% in the week.

* Dealers said the market remained underpinned by concern about the potential disruption of the flow of beans from top growers Ivory Coast and Ghana with a Nov. 20 deadline for buyers to factor in a living income differential.

* “The cocoa price rally remains supported by various supply concerns, including uncertainty over Ivory Coast exports,” Fitch Solutions said in a note.

* March London cocoa rose 6 pounds, or 0.3%, to 1,953 pounds per tonne​. (Reporting by Marcelo Teixeira and Nigel Hunt; Editing by Paul Simao and Shailesh Kuber)

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