Robusta coffee falls further away from 47-year peak, arabica also down
LONDON, Dec 3 (Reuters) -Robusta coffee futures on ICE tumbled again on Tuesday after hitting their highest price in decades last week, as traders cited a rush to sell in top producer Vietnam.
Arabica coffee also slid.
Robusta and arabica are to some extent fungible so an increase in supplies of one will often weigh on prices of both.
COFFEE
* Robusta coffee futures LRCc2 fell 4% to $4,613 a metric ton at 1632 GMT, having slid 10.6% on Monday.
* The contracts peaked at $5,694 a ton on Friday, the highest since 1977 according to the International Coffee Organization's (ICO) price index.
* Dealers said the coffee flow from upcountry Vietnam has finally started to surge as middlemen decided to unload their stockpiles at the first sign of price weakness on the ICE futures exchange.
* Arabica coffee futures KCc2 fell 0.6% to $2.9430 per lb, having fallen 6.9% on Monday. The contract scaled its highest since 1977 on Friday at $3.3545.
* "It looks like the bigger hedge lifting volume has subsided since (last week's price peak)," said StoneX coffee broker Tomas Araujo.
* A weak Brazilian real BRL= is also weighing on coffee, encouraging exporters to sell dollar-priced beans and rake in higher returns in local currency terms. The real is near all-time lows against the dollar.
COCOA
* New York cocoa futures on ICE CCc2 fell 3.9% to $9,025 a ton, after setting a five-month high of $9,569 on Monday.
* Cocoa prices soared to a record high of $11,722 a ton in April thanks to disastrous harvests in top producers Ivory Coast and Ghana, but have since retreated somewhat on hope the current crop will fair better.
* London cocoa futures on ICE LCCc2 fell 4.6% to $7,383 a ton, after setting a five-month peak of 7,839 on Monday.
SUGAR
* March raw sugar SBc1 was up 2% at 21.49 cents per lb, having hit its lowest in more than two months at 20.70 on Monday.
* March white sugar LSUc1 was up 1.4% at $555.30 a ton.
Reporting by Maytaal Angel; Editing by Susan Fenton
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
