LONDON: Arabica coffee futures on ICE fell sharply to a two-month low on Tuesday, pressured by weakness of the currency of top producer Brazil and the prospect that a global economic downturn could curb consumption.
COFFEE
September arabica coffee fell 3.1% to $2.0670 per lb by 1450 GMT after touching a two-month low of $2.0630.
Dealers said an increasingly bleak global economic outlook had also prompted speculators to reduce a net long position over the past few days.
The weakness of Brazil’s real currency has tempted exporters to sell dollar-priced coffee by raising returns in local currency terms.
September robusta coffee fell 0.9% to $1,948 a tonne.
SUGAR
October raw sugar fell 1% to 18.67 cents per lb, with speculators increasingly looking to hold short positions against the backdrop of a gloomy economic outlook.
Dealers noted the cane crush during the second half of June in the key centre-south region of Brazil was slightly lower than expected.
August white sugar rose 0.3% to $573 a tonne.
COCOA
September New York cocoa fell 1.2% to $2,345 a tonne, with the market kept on the defensive by concerns over a potential weakening of demand linked to global economic woes.
Dealers said that cocoa grind data for the second quarter should provide an indication on whether demand has already begun to weaken. European grind data is due on Wednesday and the North American grind is scheduled for release on July 21. September London cocoa fell 0.8% to 1,746 pounds a tonne.
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