Arabica coffee extends losses after biggest weekly fall in 22 years

LONDON: ICE arabica coffee fell on Monday after clocking up its biggest weekly fall in 22 years last week amid ongoing worries over improved crop prospects in top producer Brazil.

COFFEE

December arabica coffee fell 1.2 cents, or 1.4pc, to $1.1410 per lb at 1154 GMT, having dropped 14pc last week.

ICE speculators increased their bullish bet in arabica by 2,440 contracts to a total net long position of 35,532 contracts in the week to Sept. 15, data showed.

"People thought funds may have liquidated more but they haven't, and we're expecting rains (in Brazil). I think the market could look lower (near term) but mid to longer term we will build a base again," said a dealer.

"We're looking at too much coffee in Brazil (this year) but a deficit year after. I think fair value is around $1.20/lb," he added.

November robusta coffee fell $13, or 1pc, to $1,343 a tonne. Robusta lost 5.4pc last week.

SUGAR

October raw sugar ??edged up 0.04 cent, or 0.3pc, to 12.81 cents per lb??, having hit its highest since late August at 12.85.

"Investor buying is probably encountering only modest selling. Producers are known to have largely hedged their season 2020 production.

There are few obvious sellers - in the near dates," said Commonwealth Bank of Australia.

ICE speculators cut their net long position in raw sugar in the week to Sept. 15 by 8,785 contracts for a total net long bet of 112,489 contracts, data showed.

December white sugar fell $0.60, or 0.2pc, to $370.90 a tonne. It gained near 4pc last week.

COCOA

December London cocoa ??rose 48 pounds, or 2.7pc, to 1,862 pounds per tonne?, having hit its highest since mid-May on Tuesday amid political tensions in the Ivory Coast.

December New York cocoa ??rose $53, or 2pc, to $2,676 a tonne.

ICE speculators increased their net long position in cocoa by 7,068 to 22,777 contracts in the week to Sept. 15.