January robusta coffee finished down $40, or 2.13 percent, at $1,838 per tonne after dipping to $1,830, a contract low and the weakest for the second position since September 2016. Prices were under pressure as the harvest approached in Vietnam, the world's top robusta producer, though dealers noted rains could raise some quality concerns.
December arabica coffee settled down 2.15 cents, or 1.72 percent, at $1.2295 per lb after falling over 3 percent to $1.2120, the weakest for the front-month since late June. Dealers said the market was battered by speculative selling after the weakness in robusta dragged it below key support levels, which are around $1.2675 for the second position.
"Technically the market is not bullish (and) the next two weeks we'll get some decent rain in Brazil that'll help" the crop, said a US trader. Showers are expected in Brazil's key coffee regions over the next 6-10 days, MDA Weather Services said in a daily report. The rain forecasts have helped ease concerns over dry weather in the world's top grower.
December New York cocoa settled up $29, or 1.38 percent, at $2,123 per tonne, with traders saying speculators continue to cover their net short position. Speculators have dialed back their bearish bet for seven straight weeks, US government data showed last week. Output in top grower Ivory Coast could fall by nearly half in the first quarter of next year because of disease that has wiped out a significant portion of pods, exporters said.
December London cocoa settled up 18 pounds, or 1.16 percent, at 1,571 pounds per tonne. March raw sugar settled down 0.13 cent, or 0.88 percent, at 14.61 cents per lb, turning lower after nosing up to a three-month high of 14.84 cents. Prices reversed direction as a short-covering rally that has fueled a run-up since Friday dried up, traders said.
Bunge has hedged about half of its sugar sales next year and about 75-80 percent this year, the agribusiness company's chief financial officer told investors on Wednesday. December white sugar settled down $2, or 0.5 percent, at $382.40 per tonne.
Copyright Reuters, 2017