Dealers pointed to chart-based weakness, which triggered sell-stops, although they said low volumes signalled a lack of conviction. Prices remained stuck in the trading range set the past two weeks after the market bounced up from April's 11-month low at $1.2865. "We've got technical stops going, but there's no volume to it," said one dealer. "We've just got some also selling, but it's nothing fundamental."
Robusta coffee fell in tandem, with July closing down $30, or 1.5 percent, at $1,984 per tonne. The market has been weighed down by ample nearby supplies, which has stifled bullish sentiment for the time being. Traders said the market has lacked direction for the past two weeks and that it was awaiting new fundamentals. July raw sugar settled down 0.21 cent, or 1.3 percent, at 15.63 cents per lb, after tapping a 1-1/2-week high at 15.93 cents.
Mills in the main center-south cane belt in Brazil crushed 24.091 million tonnes of cane in the second half of April, down 33.5 percent from the same period last year, growers association UNICA said. The crush was slightly below market expectations and Brazil energy firm COSAN said rains in April had delayed the cane harvest but should help yields later in the crop.
Wilmar's sugar segment recorded a loss of $34.5 million in its first quarter results and the Singapore-based commodity trader said in a statement: "recent volatility in sugar prices is expected to impact our sugar operations." August white sugar settled down $5.90, or 1.3 percent, at $447.60 per tonne. July London cocoa settled up 1 pounds, or 0.1 percent, at 1,530 pounds per tonne. Dealers said the market continued to be weighed down by excess supplies, but the weakness of sterling helped to underpin prices in London. July New York cocoa settled down $2, or 0.1 percent, at $1,952 per tonne.
Copyright Reuters, 2017