Total New York cocoa futures open interest rose to a record 307,188 contracts on Tuesday, ICE data showed, just a week after speculators took their biggest net short position on record. July London cocoa settled down 24 pounds, or 1.7 percent, at 1,390 pounds per tonne, drifting back down toward a five-year low of 1,372 pounds set on April 20.
Dealers said the strong pace of port arrivals in Ivory Coast was helping to keep the market on the defensive. Traders noted that while demand in Asia was expected to keep growing, it needed to improve in the European and North American markets to provide price support. July raw sugar settled down 0.11 cent, or 0.7 percent, at 15.77 cents per lb.
Traders pointed to favorable crop weather in top grower Brazil heightening the prospects of a large crop this year. Dealers said they were also keeping a close watch on the sugar trade talks between the United States and Mexico, which are "at an impasse," according to US Commerce Secretary Wilbur Ross. August white sugar settled down $2.49, or 0.5 percent, at $450.20 per tonne. Robusta coffee futures rallied for the third straight session, with July closing up $39, or 2 percent, at $2,034 per tonne. Dealers said the market was correcting higher after last month's sharp drop to a 7-1/2-month low driven by fund long liquidation. July arabica coffee settled up 1.2 cent, or 0.9 percent, at $1.3745 per lb.
Copyright Reuters, 2017