LONDON: Cocoa futures weakened on Wednesday as a decline in demand for chocolate confectionary hurt sentiment, while firmer technicals helped boost arabica coffee.
COCOA
July London slipped 23 pounds, or 1.43 percent, to 1,580 pounds a tonne by 1416 GMT, while July New York cocoa fell $28, or 1.41 percent, to $1,960 a tonne.
Both markets made gains on Tuesday in a moderate recovery after prices hit four-week lows recently.
European first-quarter grind data showed an increase of 1.1 percent from the same period last year to 339,485 tonnes, although Germany's grind fell 7.7 percent.
"It's coming so close to expectations that the figure is not going to be market moving," said Jonathan Parkman, head of agriculture at Marex Spectron.
However, sentiment was dampened by data, released in Barry Callebaut's results, showing the global chocolate confectionary market shrunk by 2.1 percent in the six months to February.
"That is weaker than I expected and I would suggest it has had a slightly negative effect on people's perceptions," Parkman said.
Although declining cocoa prices have yet to boost consumption, Barry Callebaut also reported better than expected first-half net profit, giving some hope that the sector could see improving margins going forward.
COFFEE
May arabica coffee rose 1.45 cents, or 1.03 percent, to $1.4165 per lb, supported by firmer technicals after prices climbed above the 40-day moving average.
Brazil exported 2.36 million 60-kg bags of green coffee in March, well below the 2.77 million bags reported a year earlier despite a larger crop, Cecaf? said on Tuesday.
May robusta was a marginal $3, or 0.14 percent, higher at $2,179 a tonne, after earlier climbing to $2,182, its highest since March 2.
Major European coffee buyers such as Nestle are struggling to source premium robusta beans after heavy rains in top grower Vietnam wreaked havoc on its latest crop.
SUGAR
May raw sugar eased 0.01 cent, or 0.06 percent, to 16.71 cents a lb.
Technicals were firmer, after a positive close in the previous session, although ample global supplies remained in focus.
Brazil's center-south sugar output jumped to 270,000 tonnes in the second half of March from 73,000 tonnes in the previous fortnight as more mills started crushing, Unica said.
May white sugar fell $1.3, or 0.27 percent, to $482.90 per tonne.
The May contract expires on Thursday, with dealers anticipating a small delivery.
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