Raw sugar settles at 5-month high, coffee dips
Updates with settlement prices, changes dateline, previous LONDON
NEW YORK, Sept 18 (Reuters) -Raw sugar futures settled at a five-monthhigh as dry weather in Brazil curbed the outlook for next year's cane crop, while arabica coffee prices slipped back froma 13-year high set earlier this week.
SUGAR
* October raw sugar SBc1 rose 5.9% to 21.16 cents per lb, the highest since early April.
* Dealers said speculators were scaling back a net short position in raw sugar with supplies set to tighten during the final quarter of this year once the cane harvest in Centre-South Brazil has wound down.
* The market has also been supported by a diminishing outlook for the next cane crop in CS Brazil following a prolonged dry spell and recent fires.
* December white sugar LSUc1 rose 3.7% to $555.50 a metric ton, after hitting a two-month high at $561.
COFFEE
* December arabica coffee fell 0.7% to $2.644 per lb after touching its highest since 2011 at $2.7180 on Monday.
* Dealers said hot, dry weather in Brazil remained the main supportive factor, denting prospects for next year's crop.
* "The potential of the 2025/26 Brazil arabica crop is hanging by a thread. Rainfall in arabica areas has been consistently below normal levels since the start of the dry season in April," Rabobank said in a note on Wednesday.
* The bank forecast that the global coffee market would shift from balance to a small surplus in 2024/25 but shipping delays, container scarcity and the impact of looming EU deforestation rules would see prices steady at lofty levels for the rest of 2024.
* November robusta coffee LRCc2 rose 0.6% to $5,334 a ton.
COCOA
* December New York cocoa CCc1 rose 2.5% to $7,814 a ton.
* March London cocoa LCCc2 rose 1.3% to 4,649 a ton.
Reporting by Nigel Hunt, additional reporting by Shariq Khan; editing by David Evans, Alex Richardson and Deepa Babington
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