LONDON: London cocoa futures on ICE hit their lowest in more than a year on Monday amid escalating demand worries and signs of ample supply, while arabica coffee surged as the Brazilian real recovered.
September London cocoa fell 12 pounds, or 0.7%, to 1,675 pounds per tonne by 1435 GMT, having hit its lowest since last May at 1,656.
Above-average rains last week in most of top producer Ivory Coast's cocoa regions bode well for the start of the next main crop in October but could hurt the current mid-crop, as indicated by falling port arrivals.
September New York cocoa fell $43, or 1.9%, to $2,233 a tonne. Speculators increased their net short position in ICE New York cocoa by 574 contracts to 14,227 contracts in the week to June 23.
September arabica coffee rose 4.5 cents, or 4.7%, to 101.15 cents per lb, having hit its highest in a month at 103.15.
The real rose versus the dollar, deterring Brazilian farmers and exporters from selling by lowering the value of coffee in local currency terms.
Speculators increased their net short in ICE arabica coffee by 3,516 contracts to 27,669 contracts in the week to June 23.
September robusta coffee rose $29, or 2.5%, to $1,182 a tonne.
Vietnam's coffee exports in the first half of this year are expected to have increased 3.7% from a year earlier.
July raw sugar, which expires on Tuesday, dipped 0.05 cents, or 0.4%, to 11.61 cents per lb, having hit a near one month low of 11.33. Limiting losses in sugar, oil prices recovered, pushing mills in Brazil closer to the point where it might be profitable to make cane-based ethanol fuel at the expense of sugar.
Speculators raised a net long position in ICE raw sugar in the week to June 23 by 17,453 contracts to 40,081 contracts.
August white sugar fell $0.90, or 0.3%, at $350.30 a tonne.
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