Robusta coffee futures on ICE were slightly lower on Monday, with selling by producers in Vietnam helping to stall the market's strong advance. March robusta coffee was down $9, or 0.4 percent, at $2,252 a tonne by 1436 GMT. The second position had risen to a peak of $2,268 on Friday, its highest since May 2012.
"There is some Vietnamese selling ahead of Tet," one London dealer said, referring to the Lunar New Year, Vietnam's biggest festival, which runs from January 26 to February 1 this year.
Dealers said there were also doubts about the extent to which speculators would extend a record long position in robusta coffee. "The market may rally further, but the rationale is becoming less clear," the dealer added. Robusta coffee prices had been rising for almost one year, boosted by tightening supplies after poor crops in Brazil and Indonesia and a decline in production in Vietnam.
The market is currently about 60 percent above prices at this time last year. Arabica coffee moved higher with the market's strong performance so far this year helping to increase fund appetite for the commodity. March arabica coffee was up 2.5 cents, or 1.6 percent, at $1.5570 per lb after rising to an eight-week high of $1.5610. Raw sugar futures were higher as the market continued to be underpinned by diminished crop prospects in India.
Green Pool has cut its estimate for India's crop by 1 million tonnes to 20.5 million tonnes, the analyst confirmed on Monday, adding that there had been heavy output reductions in Maharashtra and Karnataka. March raw sugar was up 0.24 cents, or 1.2 percent, at 20.42 cents a lb, moving back towards the middle of its current trading band of 20-21 cents per lb.
Dealers said the market's ability to hold key support around 20 cents helped to spark buying. The front month rebounded from lows of 20.05 cents on both Thursday and Friday.
March white sugar was up $5.40, or 1 percent, at $535.80 a tonne. London cocoa futures were lower as sterling rose to a five-week high against the dollar and crop conditions remained favourable in top grower Ivory Coast. March cocoa in London was down 12 pounds, or 0.7 percent, at 1,736 pounds a tonne. March New York cocoa was up $5, or 0.2 percent, at $2,145 a tonne.