LONDON: Robusta coffee futures on ICE fell to their lowest level in more than five months on Tuesday and the nearby premium declined on diminishing concern about nearby supply tightness.
COFFEE
November robusta coffee fell $41, or 2.1 percent, to $1,904 a tonne by 1439 GMT after dipping to a low of $1,900, the weakest for the front month since May 22.
Dealers also noted the November contract's premium to January had weakened to about $25 from a peak this month of more than $50.
A steady decline in the open interest ahead of Wednesday's first notice day has reduced concern over potential tightness in tenderable supplies.
"It (the open interest) is going to be a manageable number by the end of the day," one dealer said.
Dealers said they were continuing to monitor weather in top robusta producer Vietnam, where intermittent rainfall could delay the harvest.
December arabica coffee fell 0.8 cents, or 0.6 percent, to $1.2510 per lb.
SUGAR
March raw sugar eased by 0.03 cents, or 0.2 percent, to 14.70 cents per lb.
Dealers said producer selling had helped to stall the recent run-up in prices that some have linked to a rise in ethanol values in Brazil, which has helped to reduce the amount of cane being used to produce sugar.
"The market is consolidating gains but it remains to be seen whether a further step upwards can be made," said Sucden Financial senior trader Nick Penney, adding that trends in energy or currency markets could fuel further gains.
"It will depend on whether producers take advantage of any rally and on how heavy the order flow is," he added. * December white sugar rose $1.50, or 0.4 percent, to $385 a tonne.
The global sugar market is poised for a 2017/18 surplus of 9.8 million tonnes, Australia-based analyst Green Pool said on Tuesday, amid stronger output and sluggish consumption growth.
COCOA
December London cocoa fell by 11 pounds, or 0.7 percent, to 1,560 pounds a tonne.
Dealers said that generally favourable weather in top producer Ivory Coast was helping to keep the market on the defensive, though prices remained within the recent trading range.
High temperatures and light rain helped the start of the cocoa crop in Ivory Coast last week after the heavy rains of recent months, farmers said on Monday.
December New York cocoa slipped by $9, or 0.4 percent, to $2,109 a tonne.
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