LONDON: Arabica coffee futures on ICE eased on Wednesday after earlier matching the prior session’s two-month high with the market technically overbought after its recent strong advance.
Coffee
Arabica coffee futures fell 0.2% to $3.5545 per lb by 1200 GMT after rising as far as $3.5910.
Dealers said the market may be due for a period of consolidation after the recent strong advance in prices.
The market has been supported by a drop in certified exchange stocks as roasters look to secure alternative supplies following the imposition of a 50% tariff on U.S. imports of Brazilian coffee.
Dealers noted, however, that exchange stocks had begun to creep up this week, standing at 736,573 bags, as of August 19, up from a recent low of 726,661 bags on August 14. Most of the added coffee is from Honduras with some increase also in Mexican supplies.
Robusta coffee gained 1% to $4,312 a metric ton.
Arabica coffee turns lower after setting two-month peak
Sugar
Raw sugar rose 1.7% to 16.58 cents per lb.
Dealers said supportive factors included the recent rise in refining margins, which should boost demand for raws, and sentiment that strong imports into China in July are likely to continue for at least the next couple of months.
White sugar gained 2.7% to $490.60 a ton.
Cocoa
New York cocoa fell 0.75% to $8,106 a ton.
Dealers said there remained concern about dry weather in West Africa while noting isolated showers this week had provided some relief.
London cocoa lost 0.4% to 5,534 pounds per ton.
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