LONDON: Robusta coffee futures fell to a two-month low on Tuesday as the harvest progressed in top producer Vietnam while arabica prices also fell as Brazil exported supplies at a record pace.
COFFEE
* March robusta coffee fell $9, or 0.6 percent, to$1,581 a tonne by 1321 GMT after dipping to a two-month low of $1,580.
* Dealers said the market was on the defensive as the flow of newly harvested supplies from top robusta producer Vietnam gathers pace.
* "We are getting nearer and nearer to the main flow (of coffee from Vietnam). Robusta continues to erode lower with industry buying in small pockets to maintain (coverage) as opposed to adding," one dealer said.
* March arabica coffee was down 1.3 cents, or 1.2 percent, at $1.0645 per lb after setting a two-month low of $1.0640.
* Dealers said the market's inability on Monday to hold on to the bulk of its gains had added to the bearish mood and there appeared to be renewed fund appetite to take short positions.
* The strong pace of exports from Brazil also helped to ensure the market was well supplied.
* Brazilian green coffee producers exported an unprecedented volume of beans in November, according to government data released on Monday, with farmers harvesting a record crop this season.
SUGAR
* March raw sugar was down 0.07 cents, or 0.5 percent, at 12.84 cents per lb.
* Dealers said the market was struggling to sustain advances above 13 cents despite support from a rise in energy prices that could encourage more use of cane to produce biofuel ethanol in Brazil.
* March white sugar fell $1.90, or 0.5 percent, to $348.50 a tonne.
COCOA
* March London cocoa was down 12 pounds, or 0.7 percent, at 1,607 pounds a tonne.
* Dealers said the strong pace of port arrivals in top producer Ivory Coast and generally favourable crop conditions were weighing on prices despite good demand for cocoa.
* Farmers in Ivory Coast's cocoa-growing regions said on Monday that moisture levels were sufficient to sustain their crops despite the arrival of dry Harmattan winds and slightly below-average rainfall last week.
* March New York cocoa fell $15, or 0.7 percent, to $2,188 a tonne.
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