London July coffee futures fell 4 percent to $1,112 a tonne on Tuesday amid fund selling, tracking a decline in New York, dealers said. "There are some funds going short. It's New York that started it off," one dealer said.
The benchmark July contract settled down $45, or 3.86 percent, at $1,120, while the day's range was between $1,157 and $1,112. Total volume was 17,529 lots
The bottom of the day's range was the July contract's lowest point since May 23, when it fell to $1,102. On a front-month continuation basis, London coffee was down 4.68 percent from $1,175 at the beginning of the year.
Another dealer said the sell-off was probably not related to declines in other commodities.
"It's to do with New York," the dealer said.
The commodities sector generally slipped on Tuesday as traders weighed concerns about the Iranian nuclear dispute against fears that rising inflation may lead to higher interest rates and dampen economic growth.
COCOA TICKS UP:
London cocoa futures settled up in thin-volume trade on Tuesday amid trade and industry buying, dealers said.
The benchmark July contract settled up 4 pounds, or 0.47 percent, at 853 pounds. The day's range was between 862 and 850 pounds. Total volume was 13,859 lots.
Nigerian farmgate cocoa prices held stable at 170,00 naira ($1,333) per tonne, but a dip in bean count slowed down business last month, buyers said on Tuesday.
Cocoa arrivals at ports in Ivory Coast reached 1,184,000 tonnes between October 1 and June 5, according to an estimate by major exporters on Tuesday.
SUGAR LOWER: London white sugar futures closed lower on Tuesday, weakened partly by a sharp decline in the crude oil market, dealers said. Benchmark August ended off $4.5 at $447 per tonne after trading in a range of $451.5 to $443.4.
Comments
Comments are closed.