LONDON: Cocoa futures on ICE slumped to four-month lows on Tuesday on fund selling against the backdrop of concerns about weak demand for chocolate, while sugar prices also fell.
COCOA London cocoa fell 4 percent to £3,746 a metric ton at 1326 GMT, after hitting a four-month low of £3,697. Dealers said price charts were looking increasingly bearish following the close below £4,000 a ton on Monday and funds were increasing a net short position. Weak demand for chocolate has added to the bearish mood and has contributed to a rise in exchange stocks. They, however, noted port arrivals in top grower Ivory Coast remained well below last year’s levels, although the decline may partly be driven by a rise in the smuggling of cocoa to neighbouring countries. New York cocoa slid 4.45 percent to USD4,892 a ton, after setting a four-month low of USD4,830.
SUGAR Raw sugar fell 0.8 percent to 18.06 cents per lb, after setting a five-week low of 17.93 cents. Dealers said physical demand remained weak despite the recent drop in prices and the market may need to fall further in the short term. White sugar lost 1 percent to USD504.60 a ton.
Pakistan’s state agency Trading Corporation of Pakistan has issued a tender to sell and export 108,000 metric tons of white refined sugar, European traders said on Tuesday.
COFFEE
Robusta coffee fell a marginal 0.03 percent to USD3,266 a ton, hovering just above last week’s 2-1/2-year low of USD3,140. Arabica coffee lost 0.2 percent to USD2.6675 per lb.
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