LONDON: New York cocoa futures on ICE fell on Wednesday, weighed down by souring technical signals and signs of ample supplies from top grower Ivory Coast, while robusta coffee set a fresh two-month low.
* March New York cocoa was down $50, or 2.3 percent, at $2,137 a tonne by 1501 GMT.
* Dealers said chart signals had weakened after the market was unable to climb above key resistance levels, triggering speculative selling in light volume.
* Market participants were closely monitoring supplies from top grower Ivory Coast where early port arrivals are off to a strong start.
* “There is a suspicion that may mean more unsold cocoa yet to come through the system,” said one dealer. “But there are no visible signs of origin offerings right now.”
* Dealers also said weather conditions seemed favourable in Ivory Coast, further bolstering expectations for ample supplies.
* “Soil moisture levels are perceived as being good, so that should put us in good stead going forward into the dry season,” the dealer said.
* Expectations for ample supplies were also dampening buying interest from both industry and speculators, dealers said.
* March London cocoa fell 20 pounds, or 1.2 percent, to 1,591 pounds a tonne.
* March robusta coffee was down $1, or 0.1 percent, at $1,580 a tonne, after earlier falling to $1,575 a tonne, the lowest for the second position since early October.
* Dealers said the structure had weakened after prices failed to gain a foothold above $1,600 in the prior session, but buying appetite at lower levels was providing some support.
* Focus remained on ample global supplies as the harvest in top grower Vietnam gathered pace but recent weather conditions could cause some delays to early shipments, traders said.
* March arabica coffee was down 0.60 cents, or 0.6 percent, at $1.0630 per lb, hovering above a two-month low of $1.06 set in the prior session.
* Prices were weighed down by a weakening in Brazil’s currency, which encourages producer selling by boosting local returns on dollar-traded commodities like coffee.
* March raw sugar was down 0.04 cents, or 0.3 percent, at 12.71 cents per lb.
* March white sugar rose $0.80, or 0.2 percent, to $345.10 a tonne.