LONDON: Arabica coffee futures fell on Thursday, pressured by persistent speculative selling against a more crop-friendly weather outlook in top grower Brazil, while London cocoa rose on chart buying.
COFFEE
December arabica coffee was down 2.60 cents, or 1.9 percent, at $1.3750 per lb by 1337 GMT.
Prices gained in the previous session, partially rebounding from a recent sell-off triggered by forecasts for crop-friendly rains in Brazil.
However, selling pressure resumed on Thursday, with dealers saying there was little technical inspiration for speculators to cover short positions. The fundamental focus, meanwhile, remained on weather in Brazil.
"If (the rains) materialise, the market will keep going down," said Carlos Mera, senior commodities analyst at Rabobank. "We still need to see more rains (in the key coffee areas). But it's the start of the wet season - more rains will come."
Brazil's government on Thursday cut its projections for coffee output this year, with a heavier reduction for the arabica type.
November robusta coffee was down $24, or 1.2 percent, at $2,011 a tonne after rallying 2.6 percent to a two-week high in the previous session.
Coffee farmers in Vietnam have started early harvesting but trade is still muted in both Indonesia and Vietnam due to weak demand and low supply, traders said on Thursday.
COCOA
December London cocoa rose 15 pounds, or 1 percent, to 1,495 pounds a tonne, partly supported by a more subdued British pound.
December New York cocoa gained $16 or 0.8 percent, to $2,014 a tonne.
Dealers said the market was dominated by technically-inspired buying, as participants awaited indications of the progress of the next crop in top grower Ivory Coast.
Olam International's top cocoa official on Wednesday said he expects Ivory Coast production during the October-to-March main crop to fall by at least 10 percent from last year's record 1.5 million tonnes.
SUGAR
October raw sugar was down 0.04 cents, or 0.3 percent, at 14.03 cents per lb.
December white sugar fell $0.60 or 0.2 percent to $370.40 a tonne.
Prices have been under pressure as the European Union prepares to liberalise its sugar regime in October, with expectations for ample output reinforced by the European Commission boosting its estimate for sugar beet yields in the bloc.
"These stronger yields suggest the EU will have a significantly larger harvest in the first season of production quotas having been lifted," ING said in a market note.
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