LONDON: Arabica coffee futures on ICE were lower on Friday, with the market back on the defensive after a recent rally as the focus returned to excess supplies.
COFFEE
* July arabica coffee was down 1.45 cents, or 1.4%, at $1.0060 per lb by 1156 GMT.
* The front month peaked at a four-month high of $1.0615 on Tuesday as it rallied after a prolonged slump that sent prices to a 13-1/2 year low in May.
* Dealers said the recent run-up had been linked to a strengthening in Brazil's real currency and some weather concerns in the world's top grower but was not sustainable because of excess global supplies.
* CoffeeNetwork on Friday projected that there would be a marginal global surplus of 0.3 million bags in 2019/20 despite the season being an off-year in Brazil's biennial crop cycle.
* "The world 2019/20 coffee market looks likely to avoid a fall into production deficit, as has historically been the case in the biennial supply/demand global balance prompted by Brazil's on/off seasons," CoffeeNetwork analyst Andrea Thompson said in a report.
* "Going forward, the question is how long a period of low prices is needed to see a significant enough halt in the increase in world production levels for consumption to again absorb global crops."
* July robusta coffee fell $7, or 0.5%, to $1,424 a tonne.
SUGAR
* July raw sugar was down 0.06 cents, or 0.5%, at 12.45 cents per lb,
* Dealers noted that producer selling above 12.50 cents was helping to keep a lid on the market, with highs of 12.53 cents on Wednesday, 12.52 cents on Thursday and 12.50 cents on Friday.
* August white sugar fell by $1, or 0.3%, to $338.30 a tonne.
* More European sugar factories will close as companies are forced to cut costs after a slump in prices since the end of EU production quotas wiped out profits, French sugar group Cristal Union's chief executive said on Thursday.
COCOA
* July London cocoa fell 2 pounds, or 0.1%, to 1,780 pounds a tonne as the market continued to consolidate after a sharp rise in prices in the second half of May.
* July New York cocoa was down $10, or 0.4%, at $2,417 a tonne.
* US stockpiles of Venezuelan cocoa swelled in May to levels not seen in at least five years, a Reuters analysis showed, as exporters in the crisis-hit country hit by US sanctions scramble to raise cash however they can.
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