LONDON: London cocoa futures on ICE fell to the lowest level in more than four years on Thursday as technically driven selling helped to accelerate a decline driven by excess supplies and this week's surge in sterling.
COCOA
July London was down 55 pounds or 3.7 percent at 1,416 pounds a tonne by 1241 GMT after slipping to 1,412 pounds, the lowest for the second position since March 2013.
Dealers said follow-through selling occurred, after New York cocoa prices fell in the post-close session on Wednesday.
"London was due down quite a bit this morning (based on New York weakness late on Wednesday) and I think you have systematic selling here," one dealer said, referring to selling driven by technical factors rather than fresh fundamentals.
Dealers noted, however, the fundamental backdrop remained bearish with a large global surplus widely forecast for the current 2016/17 season.
Asia's first-quarter cocoa grind was up 19.2 percent year-on-year, but slightly below the previous quarter.
The market was awaiting the release of data for North America on Thursday. The first-quarter grind is expected to be flat to slightly higher, year-on-year.
July New York cocoa fell $70, or 3.7 percent, to $1,803 a tonne.
SUGAR
July raw sugar was up 0.15 cent, or 0.9 percent, at 16.67 cents a lb.
The market recouped some of the prior session's losses, with prices moving back towards the middle of this month's range of 16.20 to 17.26 cents a lb.
Dealers said the medium-term downtrend remained intact.
"The funds seem to be comfortable with their short at present and the sugar bears are yet to have a 'story' to panic them. We await fresh news and expect the market to continue sideways to lower," said Tom Kujawa, co-head of the softs department at Sucden Financial.
August white sugar rose by $3.00, or 0.6 percent, to $472.30 a tonne.
COFFEE
July arabica coffee rose a marginal 0.2 cent, or 0.1 percent, to $1.4085 per lb, consolidating after the prior session's sharp decline.
July robusta rose $2 to $2,176 a tonne.
Coffee prices in Vietnam eased this week as trade was thin due to low demand while prices in Indonesia dropped on surplus supply, traders said on Thursday.
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