LONDON: Robusta coffee futures on ICE fell to a 7-1/2 month low on Tuesday on technically-driven selling by funds as the market extended its recent sharp decline.
COFFEE
July robusta fell $39, or 2.0 percent, to $1,897 a tonne by 1121 GMT after dipping to a low of $1,891, the weakest for the second position since Sept. 12.
Dealers said investment funds were continuing to liquidate long positions with technical indicators increasingly bearish after the recent fall in prices.
"The indicators are firmly on the downside after recent price action," Sucden Financial research analyst Geordie Wilkes said in a market note.
July arabica coffee rose 0.1 cents, or 0.1 percent, to $1.32 per lb.
COCOA
July London cocoa fell 12 pounds, or 0.8 percent, to 1,412 pounds a tonne.
Traders said the market was drifting back down towards Thursday's four-year low of 1,372 pounds,
They noted port arrivals in top grower Ivory Coast were running well above levels a year earlier, reinforcing sentiment there will be a huge global surplus this season.
"These strong arrivals highlight the surplus environment that the global cocoa market is in," ING said in a market note.
Cocoa-growing countries must coordinate production strategies to confront a sharp drop in prices that has hit farmers and government coffers hard, the International Cocoa Organization (ICCO) chairman said on Monday.
Ghana, the world's number two cocoa producer, has missed out on nearly $1 billion in export earnings due to a steep decline in global cocoa prices, the CEO of Ghana Cocoa Board (Cocobod) said on Monday.
July New York cocoa fell $2, or 0.1 percent, to $1,814 a tonne.
SUGAR
July raw sugar fell a marginal 0.01 cent, or 0.1 percent, to 16.31 cents per lb. The contract fell to a low of 16.17 cents on Monday, the weakest for the second position since May 9, 2016.
Dealers said the market could consolidate in the short-term just above 16 cents per lb.
August white sugar was down $0.10 at $469.10 a tonne.
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