LONDON: Robusta coffee futures slipped to a 1-1/2 year low on Tuesday, pressured by speculative selling and signs of a large crop in top grower Vietnam, while raw sugar also extended losses.
COFFEE
March robusta coffee was down $10, or 0.6 percent, at $1,676 a tonne by 1131 GMT after earlier hitting $1,672, the weakest for the second position since June 2016.
Expectations of strong production in top grower Vietnam were weighing on prices and inspiring speculators to short-sell the market, dealers said.
"Close to 100 percent of the crop in Vietnam is now harvested," said one dealer. "It's a big crop - everybody can see that and it's obviously pressuring the market."
Dealers also said, with speculators unwilling to cover their short positions and Vietnamese producers still due to hedge a large chunk of their crop, any rebound was limited.
"In Vietnam, there's a lot of people that need to fix," the dealer said. "I don't think they are aggressively selling here but, every time the market rallies, they come in around $1,750."
March arabica coffee fell 0.90 cents, or 0.9 percent, to $1.2425 per lb.
The market was battered on Monday by long liquidation from speculators spooked by weaker-than-expected buying by index funds, who officially began rebalancing.
SUGAR
March raw sugar fell 0.15 cent, or 1 percent, to 14.63 cents per lb.
Automatic sell stops and lacklustre buying by index funds triggered a speculative sell-off on Monday, pushing prices down as much as 3.6 percent.
Although the market partially recovered before the close, dealers noted it remained vulnerable to further selling.
"The close above the 40 (day moving average) yesterday could give the market some moderate strength, however, we anticipate a challenge of yesterday's low," Sucden Financial technical analyst Geordie Wilkes said in a note.
March white sugar slipped $4.10, or 1.1 percent, to $386.80 a tonne.
COCOA
March London cocoa was up 13 pounds, or 1 percent, at 1,384 pounds a tonne, supported by a weaker British pound.
March New York cocoa rose $11, or 0.6 percent, to $1,925 a tonne.
Focus remained on top grower Ivory Coast where strong port arrivals have boosted expectations of ample supplies, although recent hot weather and Harmattan winds could threaten crop development.
Dealers were also awaiting grind data from Europe and North America, due out next week, for signs of demand.
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