NEW YORK/LONDON: Robusta coffee futures on ICE fell to the lowest level in more than 14 months on Tuesday with new crop supplies beginning to flow from Vietnam while demand remains sluggish.
New York cocoa futures extended gains to reach a 7-1/2-month high as a potentially bullish technical pattern formed below the market.
COFFEE
January robusta coffee settled down $31, or 1.7 percent, at $1,824 per tonne after dipping to $1,800, the weakest since late August 2016.
Dealers said prices fell on harvest pressure from top grower Vietnam, where there was little damage to coffee farms expected from Typhoon Damrey.
"All the crops are coming in and there is no demand from the industry, so that is why the market is under pressure," one European dealer said.
December arabica coffee settled down 0.85 cent, or 0.7 percent, at $1.247 per lb.
Heavy position rolling out of December into March buoyed volume, traders said.
Dealers eyed ample arabica supplies after record 2016-17 production.
The International Coffee Organization (ICO) said this caused a global 2016-17 surplus, rather than the deficit it had previous forecast.
"The market is well supplied at the start of coffee year 2017-18 by the replenishment of stocks over this past year," the ICO said in a report on Tuesday.
COCOA
March New York cocoa settled up $30, or 1.4 percent, at $2,139 per tonne, after rising to $2,158, the highest on a continuation chart since late March.
The move lifted the intraday December premium over March to a contract high of $28, up sharply from $8 on Monday.
Chart-based buying lifted prices after the 50-day moving average crossed above the 100-day moving average to form a so called golden cross, though traders said they waited to see if this potentially bullish technical pattern formed fully.
The roughly 5 percent rally that began on Monday, was extended after rising above a key Fibonacci retracement level.
December London cocoa settled up 11 pounds, or 0.7 percent, at 1,596 pounds per tonne.
SUGAR
March raw sugar settled up 0.16 cent, or 1.1 percent, at 14.72 cents per lb.
Director of Louis Dreyfus sugar unit Biosev, Enrico Biancheri, said he expects sharp change in production mix in Brazil towards ethanol output and that the market expects this.
March white sugar settled up $2.90, or 0.8 percent, at $382.90 per tonne.
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