NEW YORK/LONDON: Arabica coffee futures on ICE tumbled for the fourth straight session to reach the lowest in nearly 13 years on Tuesday, weighed down by plentiful Brazilian supplies, while raw sugar extended losses.
COFFEE
* December arabica coffee settled down 1.45 cent, or 1.5 percent, at 95.85 cents per lb, after falling to 95.10 cents, its lowest since December 2005.
* Prices settled below $1.00, which was a key psychological support level, for the third straight session.
* Ample supplies weighed on the market, dealers said. The government of top grower Brazil raised its forecast for its 2018 coffee crops to a record 59.9 million 60-kg bags, citing bountiful yields.
* This forecast was in line with expectations, traders said.
* "For now, the specs are in control and it's going lower," said one European dealer. "We've seen them increase their short position."
* Continued weakness in Brazil's currency remained in focus, as it encourages producer selling of dollar-traded commodities.
* The relative strength index (RSI) fell below 30, indicating a technically oversold level.
* "It is somewhat oversold in terms of the RSI ... but there is no indication that the selling is over yet," said Steve Platt, futures strategist at Archer Financial Services.
* November robusta coffee settled up $13, or 0.9 percent, at $1,492 per tonne.
SUGAR
* October raw sugar settled down 0.11 cent, or 1 percent, at 10.52 cents per lb, after touching 10.43, its lowest level in more than two weeks.
* Prices tumbled 9 percent the past two sessions on concerns over a possible surge of exports from second-largest producer India, which is considering new export incentives.
* "India has the potential to flood the world market with considerable quantities of sugar," Commerzbank said in a note. "This is currently nipping any hint of price buoyancy in the bud."
* Prices settled below 10.63, the short-term 61.8 percent Fibonacci retracement level and key technical support level, and moved toward last month's 10-year low of 9.91 cents. Prices also fell below the 20- and 40-day moving averages.
* "The bulls will want to see a settlement back above these levels to avoid a further round of selling being triggered," James Liddiard of consultancy Agrilion, said in a note.
* December white sugar settled down $1, or 0.3 percent, at $329.10 per tonne.
COCOA
* December New York cocoa settled up $6, or 0.3 percent, at $2,242 per tonne.
* December London cocoa settled up 7 pounds, or 0.4 percent, at 1,592 pounds per tonne.
Comments
Comments are closed for this article.