There had been a global deficit in 2015/16. "We are seeing heavy (port) arrivals, reports of good shipments, clogged up warehouses down at the ports. We are back to the bad old days of oversupply," one dealer said. March New York cocoa was down $15, or 0.7 percent, at $2,150 a tonne by 1222 GMT, having touched a low of $2,142, the weakest for the front month since April 2013.
The benchmark front month is on track for an annual loss of more than 30 percent. Dealers said that funds had been increasing short positions against the backdrop of excess supplies and declining prices. May London cocoa was down 20 pounds, or 1.1 percent, at 1,763 pounds a tonne. Robusta coffee futures were higher, with January's premium to March climbing to about $25 from $8 on Thursday ahead of next week's first notice day.
March robusta coffee gained 1 percent to close $22 up at $2,138 a tonne. The benchmark second position ended 2016 with an annual gain of 40 percent. London-based contracts in robusta coffee and white sugar had an abbreviated session and will reopen on Tuesday. The market has been supported by tightening supplies after poor robusta crops in Brazil and Indonesia and a decline in production in Vietnam.
March arabica futures were up 0.8 cents, or 0.6 percent, at $1.3625 per lb. Raw sugar futures edged higher, with the market consolidating after a strong post-Christmas rally. March raws were 0.06 cents higher at 19.55 cents a lb. Dealers said the run-up in prices had been driven partly by talk that production in India could be lower than previously expected. Drought has curbed output in the key producing state of Maharashtra. March whites were up $3.30, or 0.6 percent, to close at $524.20 a tonne. The benchmark front month ended 2016 with an annual gain of 24 percent.