Arabica coffee futures on ICE tumbled more than 3 percent on Monday as speculators sold in thin holiday dealings, and the commodity finished 2012 down nearly 37 percent as the biggest decliner of 19 commodities on the Thomson Reuters-Jefferies CRB index. Cocoa futures hit their lowest levels in several months on follow-through selling pressure, but finished the year higher on Liffe and ICE Futures US markets.
ICE raw sugar futures were little changed in choppy dealings and marked their second straight yearly decline, while Liffe white sugar closed with a decline of 13 percent for 2012 as the third consecutive global surplus weighed. Robusta coffee on Liffe settled higher on the year, up 6 percent, as demand for the lower-price bean climbed. The Liffe and ICE markets will be closed Tuesday for the New Year's Day holiday.
March arabica coffee futures on ICE fell 3.05 cents, or 2.1 percent, to settle at $1.4380 per lb. Earlier, the March contract dipped below its contract low at $1.4180 per lb, triggering sell-stops, dealers said. The spot contract closed down 36.6 percent since the end of 2011, its weakest yearly performance since 2000. It was the biggest decliner on the CRB, a global benchmark for commodities, followed by frozen concentrated orange juice, which ended the year down 31 percent.
Record global coffee production encouraged speculators to short the market. The net short position was near a record high, US Commodity Futures Trading Commission data showed on Friday. Producers in Brazil, the world's biggest coffee grower, have been holding back selling beans as they await higher prices. March robusta coffee futures ended the session up $13, or 0.6 percent, at $1,924 a tonne.
Liffe May cocoa settled down 3 pounds, or 0.2 percent, at 1,442 pounds a tonne. The contract hit 1,438 pounds earlier in the session, the lowest level for the second month since April 16. For the year, it rose just 3 percent. Cocoa enters 2013 with global supply and demand industry estimates ranging widely, from flat to a deficit of roughly 150,000 tonnes, following a surplus year of about 90,000 tonnes in 2011/12. March cocoa futures on ICE settled down $13 from the previous session to close at $2,236 per tonne, the spot contract's weakest settlement since July 25, on follow-through selling as the chart continued to weaken.
The spot contract finished December down 12 percent, its biggest monthly drop since November 2011. It ended the quarter down 11 percent, its biggest quarterly slide since the fourth quarter of 2011. Speculators cut their net long position by 25 percent to a five-week low of 21,381 lots, US Commodity Futures Trading Commission data showed on Friday.
The modest annual rise follows a weak performance in 2011, when the spot contract tumbled 30.5 percent, the biggest decliner for that year on the CRB index. Raw sugar futures were little changed from the previous session, after hitting a double top with the previous session's three-week high at 19.58 cents per lb, then consolidating. Dealers said the market was caught between producers selling into rallies and expected price support from the index fund re-weighting.
March raw sugar futures on ICE closed up 0.09 cent, or 0.5 percent, at 19.51 cents a lb. The spot contract finished 2012 down 16.3 percent, its second straight annual loss, as ample global supplies weighed on the market. March white sugar on Liffe ended the session up $1.70 at $523.70 per tonne. The spot contract finished 2012 down 13 percent, also its second straight yearly decline.
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