LONDON: Robusta coffee futures eased on Wednesday, pressured by ample nearby supplies, while cocoa slipped in low volume as a short-covering rally waned after lifting the market to multi-week highs.
COFFEE
July robusta coffee fell $9, or 0.45 percent, to$2,011 a tonne by 1110 GMT.
Prices have recovered somewhat after plunging to a 7-1/2 month low in late April on a wave of liquidation by speculators holding a large net long position, built on expectations for a long-term supply squeeze.
However, dealers said that ample nearby supplies are stalling further advances for the time being.
"I think most people feel that the nearby requirements have been met," one dealer said. "Now we're in no man's land. We've had the sell-off and you need to see the tightness become visible."
Participants also shrugged off news that Brazil has authorised the import of Vietnamese robusta that then has to be exported as soluble coffee, noting that volumes are "irrelevant."
The country has authorised 5,893 60 kg bags so far, which have yet to be brought into the country. Soluble coffee companies, which have been squeezed by a domestic shortage, cannot import more than 500,000 bags.
Dealers said this could pave the way for further imports later in the year.
"As we go through the crop year, the conilon situation will get tight again," another dealer said. "And now the precedent has been set, there could potentially be sizeable imports into Brazil come December."
July arabica coffee fell 0.15 cents, or 0.11 percent, to $1.35 per lb.
COCOA
July New York cocoa was down $13, or 0.66 percent, at $1,947 a tonne, retreating further after slipping from its highest since April 12 in the previous session.
July London cocoa was down 8 pounds, or 0.52 percent, at 1,521 pounds a tonne.
Volumes were low, with dealers pegging the weakness on waning short-covering by speculators, which had triggered the biggest three-day surges since early 2012 in both markets.
SUGAR
July raw sugar rose 0.03 cents, or 0.19 percent, to 15.47 cents per lb.
August white sugar was up $0.50, or 0.11 percent, at $446 a tonne.
China is set to produce 10.47 million tonnes of sugar in the 2017/18 crop year, up from 9.25 million tonnes in the previous year, the agriculture ministry's first forecast for the coming harvest showed.
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