NEW YORK: Arabica coffee futures on ICE dipped on Monday as short-term traders took profits, but losses were limited by concerns about top grower Brazil's output, while cocoa fell for the fifth straight session along with the sterling currency.
Raw sugar futures on ICE Futures US were little changed after inching down to the lowest level in more than seven months on abundant supplies. December arabica coffee was down 2.60 cents, or 1.3 percent, at $1.9545 per lb by 12:33 p.m. EDT (1633 GMT).
Arabica futures fell on "liquidation of short-term guys that were long," said Rodrigo Costa, director of coffee for Newedge USA in New York.
The move marked the second straight day lower despite forecasts for coffee production figures for Brazil's current 2014/15 crop concentrating around a level below 50 million bags. The outlook for the following crop could be worse, dealers and analysts said.
"We need something well in excess of 50 million bags in 2015/16 or we're going to run into serious supply issues," a European analyst said.
Arabica coffee prices are up by around 73 percent since the start of the year on the unfavorable weather conditions in Brazil. November robusta coffee futures on Liffe were down $9, or 0.4 percent, at $2,070 a tonne.
COCOA CORRECTS Cocoa futures on ICE extended recent losses and were down 7 percent from the Aug. 27 high at $3,300 per tonne, the highest in more than three years, with analysts and dealers saying the market had become over-bought. ICE December cocoa fell $31, or 1 percent, to settle at $3,071 a tonne.
This is the fifth straight lower session, for a total decline in that period of 4.9 percent, the second position's biggest five-day losing streak since Jan. 2. Traders said the world's second-biggest producer Ghana had been selling small amounts of its 2015/16 crop and the weak sterling against the US dollar weighed on the market.
The steep tumble took prices from being technically overbought at 77 on the 14-day relative strength index in mid-August to slightly oversold at 29.1 on Monday. Liffe December cocoa futures eased 5 pounds, or 0.3 percent, to end at 1,978 pounds a tonne.
Raw sugar futures on ICE eased to a more than seven-month low, as ample supplies continued to weigh on prices but the support level around 15 cents held, basis October.
ICE October raws were up 0.02 cent, or 0.1 percent, at 15.02 cents a lb, having earlier dipped to 14.96 cents, the lowest since Jan. 30. Liffe October whites were up 10 cents, or 0.02 percent, at $416.00 a tonne.
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