Arabica coffee extends recent fall, raw sugar also down

• March arabica coffee fell 0.8 cent, or 0.6%, to $1.2890 per lb by 1438 GMT.
• March New York cocoa fell $24, or 0.9%, to $2,516 a tonne, giving up some ground after rising strongly in the run-up to the New Year holiday.
• March raw sugar fell 0.11 cents, or 0.8%, to 13.31 cents per lb.

LONDON: ICE arabica coffee futures dropped on Thursday as the market extended its retreat from a more than two-year high set in mid-December, while raw sugar and New York cocoa prices also fell.

COFFEE

March arabica coffee fell 0.8 cent, or 0.6%, to $1.2890 per lb by 1438 GMT.

Dealers said the market had lost momentum after rising sharply in November and the first half of December, adding the March contract could slip back further after peaking at $1.4245 on Dec. 17.

The run-up was fuelled by fund short-covering against a backdrop of falling stocks.

The March contract may test a support at $1.2795 per lb, a break below which could cause a loss to $1.2380, Reuters technical analyst Wang Tao said.

March robusta coffee fell $9, or 0.65%, to $1,373 a tonne.

Vietnamese farmers held back from selling beans this week due to low prices, traders said, as trade remained sluggish in Asia's top coffee markets due to the holiday season.

COCOA

March New York cocoa fell $24, or 0.9%, to $2,516 a tonne, giving up some ground after rising strongly in the run-up to the New Year holiday.

Dealers noted the outlook for this year's crop in top grower Ivory Coast remained favourable, helping to keep a lid on the market.

March London cocoa rose 6 pounds, or 0.3%, to 1,825 pounds a tonne, buoyed by a weak pound.

The pound was weaker as euphoria relating to December's election gave way to anxiety over the risk of a no-deal Brexit at the end of 2020.

SUGAR

March raw sugar fell 0.11 cents, or 0.8%, to 13.31 cents per lb.

Dealers said the market had lacked any clear trend during the last couple of weeks although it remained underpinned by tightening supplies.

March white sugar fell $2.20, or 0.6%, to $357.00 a tonne.