Arabica coffee futures tumbled in a late-day selling spree to finish at a two-week low on Tuesday, while raw sugar also slipped. Cocoa closed mixed, consolidating after Monday's steeply lower session. "We have a stronger dollar today and is maybe why we have a retracement. There is a downward movement in all the agricultural commodities, grains as well," said Romain Lathiere, fund manager with Diapason Commodities Management.
Arabica coffee futures trading on ICE Futures US were down on chart-based pressure most of the day, but extended its losses late in the session as heavy fund-type selling pushed prices lower, dealers said. Strong support was widely expected to be around $1.50, basis September. "If coffee doesn't hold support here, you could see something really nasty to the downside," said James Cordier, analyst for brokers optionsellers.com in Florida.
September arabica coffee on ICE sank 5.25 cents or 3.2 percent to settle at $1.5855 a lb, the lowest close since July 6. Raw sugar futures were softer in a range-bound market, with the trading band seen barely moving in the days ahead, brokers said. October raws fell 0.33 cent to close at 17.28 cents per lb, hitting a double top with Monday at 17.70 cents. Cocoa futures on ICE remained on the defensive after Monday's shakeout. September cocoa on ICE dipped $4 to finish at $2,977 per tonne.
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