Arabica coffee futures slide, cocoa also down
- March white sugar was up $4.30, or 1%, at $439 a tonne.
- March London cocoa fell 4 pounds, or 0.2%, to 1,682 pounds a tonne.
- March robusta coffee was down $3, or 0.2%, at $1,315 a tonne.
LONDON: Arabica coffee futures on ICE were sharply lower on Monday as lockdowns to slow the spread of COVID-19 raised concerns about the demand outlook, with rising exchange stocks and weakness in Brazil's real currency also bearish factors.
COFFEE
March arabica coffee fell 3.85 cents, or 3.1%, to $1.1985 per lb by 1510 GMT after dipping to a low of $1.1910, the weakest for the front month since mid-December.
Dealers said Brazil's real currency, which fell to its weakest since November, exerted downward pressure on prices.
A weak real boosts dollar-denominated prices in local currency terms in Brazil and can spark producer selling in the world's top coffee producer.
Dealers said the recent rise in certified stocks also weighed on the market.
March robusta coffee was down $3, or 0.2%, at $1,315 a tonne.
COCOA
March New York cocoa was down $35, or 1.4%, at $2,481 a tonne on concerns that coronavirus lockdowns across Europe could further curb demand while upcoming fourth-quarter grind data would be closely monitored.
North American grind data is due to be released on Jan. 14 and provisional European data on Jan. 20.
March London cocoa fell 4 pounds, or 0.2%, to 1,682 pounds a tonne.
SUGAR
March raw sugar was up 0.01 cents, or 0.1%, at 15.61 cents per lb. The front month had climbed to a peak of 16.33 cents last week, its highest since May 2017.
Fund buying helped to fuel the recent run-up and the latest CFTC data, for the week to Jan. 5, showed a significant expansion in the net long position held by speculators.
Short-term supply tightness, driven partly by a poor crop in Thailand, continued to underpin prices, particularly in the whites market.
March white sugar was up $4.30, or 1%, at $439 a tonne.
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