LONDON: Robusta coffee futures were lower on Thursday, weighed down by technically-driven selling and a pick-up in the pace of the harvest in top producer Vietnam.
ICE January robusta coffee was off $18 or 0.9 percent at $2,028 a tonne at 1214 GMT in thin conditions with US-based markets closed for the Thanksgiving holiday.
Dealers said funds had been scaling back long positions in the last few days, driving prices down towards the lower end of the recent trading range.
"Further selling activity would lead to the long term trend line being tested at $2,013 in today's session.
A close below this level in heavy volumes would suggest a change in trend to the downside," Sucden Financial said in a market note. Coffee harvesting in Vietnam has gained momentum due to favourable weather and higher prices this season, while trading slowed in Indonesia on thin stocks, traders said.
White sugar futures were little changed with March off a marginal 0.1 percent at $522.00 per tonne.
Dealers were keeping a close watch on the weather in Brazil with forecast rains threatening to disrupt the tail end of the cane crush in the center-south region. "Weather forecasters continue to expect wetter conditions in Brazil's southern cane regions over the weekend.
The market will assess any problems for late season (cane) crushing in the region next week," said analyst Tobin Gorey of Commonwealth Bank of Australia. March London cocoa fell 10 pounds or 0.5 percent to 1,997 pounds a tonne.
Dealers said the prospect of a global surplus in the current 2016/17 season was keeping the market on the defensive.
US-based raw sugar, arabica coffee and New York cocoa markets were shut on Thursday and will re-open on Friday.
Comments
Comments are closed for this article.