LONDON: Robusta coffee futures on ICE set a four-year high on Monday as the bean remained good value versus its arabica counterpart, while sugar slipped as downbeat sentiment prevailed in the wider financial markets.
November robusta coffee was up 1.2% at $2,176 a tonne at 1448 GMT, marking its highest in four years.
Roasters are increasingly keen to use robusta beans in place of pricey arabica, while COVID-19 restrictions in top producer Vietnam and a shortage of container freight are also boosting prices.
December arabica coffee fell 1.1% to $1.8440 per lb.
Arabica coffee speculators cut their net long position by 2,478 contracts to 34,031 in the week to Sept 14, data showed.
October raw sugar fell 0.1% to 19.04 cents per lb.
Oil prices dropped more than $1 as rising risk aversion linked to debt troubles at property major China Evergrande weighed on global stock markets and boosted the US dollar.
Raw sugar speculators cut their net long position by 23,826 contracts to 165,644 in the week to Sept 14, data showed.
Dealers said price downside in sugar will remain limited until there is a clearer picture on the outlook for top producer Brazil’s crop, which has been hit by drought and frost this season.
Indian mills are holding off on signing new sugar export contracts for the upcoming season as a rally in domestic prices widened the gap between local and global rates, industry officials said.
December white sugar fell 0.4% to $502.60 a tonne.
Only one trading house is believed to have participated in the international tender to buy 200,000 tonnes of sugar from Pakistan on Monday, traders said.
December New York cocoa fell 1.7% to $2,623 a tonne.
New York cocoa speculators cut their net long position by 3,836 to 501 in the week to Sept 14, data showed.
Dealers said they are weighing reports of an expected 2021/22 crop deficit again an imminent increase in freight rates from world no. 2 cocoa producer Ghana.