Robusta coffee dips to seven-month low; cocoa also falls

LONDON: Robusta coffee futures on ICE fell to a seven-month low on Monday, pressured by follow-through selling after the biggest one-day slump in six years on Friday.

COFFEE

July robusta fell $5, or 0.25 percent, to $1,985 a tonne by 1050 GMT after touching a low of $1,943, the weakest for the second position since Sept. 19.

Dealers noted the recent decline in the coffee market had been led by arabica, which fell sharply last Wednesday and Thursday.

"London (robusta) has followed New York (arabica) because the funds are starting to throw in the towel," one dealer said, adding that funds remain net long and could continue to sell in the short term.

The dealer also said there was plenty of robusta available in the spot physical market while roasters appear to have adequate cover so are under little pressure to buy.

July arabica coffee rose 0.4 cents, or 0.3 percent, to $1.3330 per lb, regaining some ground after dipping to a 10-month low of $1.3155 on Friday.

COCOA

July London cocoa fell 10 pounds, or 0.7 percent, to 1,447 pounds a tonne.

Dealers said the market was back on the defensive after a short-covering rally that carried prices from a four-year low of 1,372 pounds on Thursday to a peak of 1,467 pounds on Monday.

A huge global surplus in the current 2016/17 season helped to limit the extent of any recovery in prices.

Cocoa arrivals at ports in top grower Ivory Coast totalled about 30,000 tonnes for April 17-23, up sharply from 8,000 tonnes in the same period of the previous season.

July New York cocoa fell $5, or 0.3 percent, to $1,845 a tonne.

SUGAR

July raw sugar was up 0.08 cents, or 0.5 percent, at 16.59 cents per lb.

Dealers said some funds had begun to scale back a large net short position.

"Momentum investors' rationale for their sizeable short position is waning," said Commonwealth Bank of Australia analyst Tobin Gorey.

August white sugar rose by $2.20, or 0.5 percent, to $473.50 a tonne.