LONDON: Arabica coffee futures on ICE slipped on Tuesday, pressured by a weak Brazilian currency against a backdrop of thin demand from roasters and speculators, while raw sugar steadied and New York cocoa fell as chart signals soured.
COFFEE
July arabica coffee was down 0.45 cent, or 0.4 percent, at $1.1995 per lb by 1354 GMT.
Dealers said another drop in the Brazilian real had inspired producer hedging, since the weaker currency improves local returns on dollar-traded commodities.
Meanwhile, last week's speculative buying - partly inspired by the trucker strike in Brazil - had largely petered out, they said.
Speculators reduced a bearish stance on arabica coffee by 3,026 lots to 46,710 lots in the week to May 22.
Focus also remained on ample global supplies, ahead of record production in Brazil, while buying interest was still thin, dealers said.
"There's a big Brazil crop coming, so that's going to weigh on the market," one dealer said. "And the industry is not rushing to buy right now."
July robusta coffee fell $9 or 0.5 percent, to $1,743 a tonne.
SUGAR
July raw sugar was unchanged at 12.46 cents per lb, shedding gains made in earlier trading as speculators took a breather from buying.
Focus remained on a trucker strike in Brazil, which helped to lift prices to two-month highs last week and could threaten to disrupt output from Brazil, the world's biggest producer of sugar.
Industry group UNICA predicted on Monday that all mills in the key state of Sao Paulo would grind to a halt in 24 hours as effects of the trucker protests continued, even though a truckers' association said it had told drivers to return to work.
However, dealers said the market was capped by hedging by Brazilian producers keen to price supplies at higher levels as a global supply glut looms.
August white sugar rose $1.80, or 0.5 percent, to $353.20 a tonne.
The International Sugar Organization (ISO) on Tuesday forecast a global sugar surplus of 10.51 million tonnes in 2017/18 (October/September).
COCOA
July New York cocoa was down $18, or 0.7 percent, at $2,589 a tonne in thin volume, after touching its lowest since mid-April.
Prices attempted to rally in thin volume in earlier trading but retreated after failing to climb above key technical levels, dealers said.
July London cocoa was down 7 pounds, or 0.4 percent, at 1,875 pounds a tonne.
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