LONDON: Robusta coffee futures slipped on Monday on chart-driven selling against a backdrop of sluggish industry demand, while raw sugar fell sharply as a corrective rally faltered and gave way to technical selling.
COFFEE
September robusta coffee was down $33, or 1.56 percent, at $2,078 per tonne by 1434 GMT, after hitting a low of $2,074.
Dealers said weaker technicals paved the way for a correction lower in thin trading conditions. Sluggish industry demand also pressured.
The market was closely monitoring the July expiry for signs whether coffee would be delivered to roasters or remain in certified stocks.
"There's plenty of coffee around at the moment," said one dealer. "Unless we see a sharp drawdown in certified stocks, you're going to see the longs liquidate and we'll see this market come down."
September arabica coffee also fell 1.55 cents, or 1.20 percent, to $1.2735 per lb.
Colombia's coffee crop may fall below 14 million 60-kg bags this year, the head of the coffee growers' federation said on Friday.
SUGAR
October raw sugar slumped 0.48 cents, or 3.39 percent, to 13.67 cents per lb.
Prices retreated sharply from earlier gains after lack of buying interest pushed levels back towards 14 cents, triggering sell-stops just below that level, dealers said.
India also moved to raise the import tax on raw sugar to 50 percent from 40 percent in a bid to curb cheap imports and protect domestic producers.
While the move was expected, it confirmed that any further imports into the country would likely come in the form of refined sugar.
"The monsoon there is also progressing well so there seems not much incentive for India to import raws in the near future," said Nick Penney, senior trader at Sucden Financial.
August white sugar also fell $7.30, or 1.75 percent, to $410.80 a tonne, reversed course after hitting a high since June 1 on short-covering ahead of expiry on Friday.
COCOA
September New York cocoa fell $34, or 1.82 percent, to $1,838 a tonne, extending losses from last week.
September London cocoa also fell 24 pounds, or 1.61 percent, to 1,465 pounds a tonne.
The market was awaiting European grind figures due out on Tuesday for the latest indications of demand, with dealers expecting a rise of roughly 2 to 3 percent.
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