LONDON: Robusta coffee futures on ICE fell to a three-week low on Wednesday, weighed by favourable crop outlooks and bearish price charts, while sugar prices were also weaker.
July robusta coffee fell 0.9% to $2,091 a tonne by 1125 GMT after slumping to a three-week low of $2,089.
Dealers said there was a favourable outlook for 2022/23 robusta crops in both Vietnam and Brazil while there also remained concerns that the conflict in Ukraine could dent demand not only in the region but more widely as economies struggle.
They noted the market is on track for a fourth consecutive daily decline and is looking technically bearish after its weak recent performance.
“The (technical) indicators are pointing to a further decline in prices in the near term,” broker Sucden Financial said in a note.
May arabica coffee fell 1.5% to $2.2785 per lb.
May raw sugar fell 0.25% to 19.60 cents per lb, slipping back from the prior session’s one-month high of 19.81 cents.
Dealers said the recent run-up in prices had been fuelled by the strength of the currency of top producer Brazil and gains in crude oil.
A stronger Brazilian real deters exporters from selling dollar-priced commodities such as sugar and coffee by lowering their returns in local currency terms.
May white sugar fell 0.2% to $543.40 a tonne.
July London cocoa was up 1.15% at 1,766 pounds a tonne.
Dealers said drier-than-normal weather in top grower Ivory Coast helped to support prices.
July New York cocoa rose 0.8% to $2,609 a tonne.