Coffee rallies

Arabica coffee futures rallied to their highest level in two weeks on Tuesday, supported by a lack of selling in top grower Brazil due to a national holiday, while raw sugar extended the prior session's steep losses to hit two-week lows. New York cocoa on ICE Futures US eased before settling nearly flat, pressured by weak demand.
Second-month arabica coffee on ICE gained 1.45 cents, or 1 percent, to settle at $1.4270 per lb, after rising as high as $1.4530 earlier in the session, its highest level since April 8.
The gains came during a trading holiday in leading producer Brazil, resulting in light selling. Amid the lighter volume, trades above certain technical levels prompted bounces in the price, said Hector Galvan, senior market strategist for brokerage RJO Futures in Chicago. Galvan noted that the market remained in a trading range between $1.32 cents a lb and $1.50 cents a lb, where it has been for much of the past six weeks. "The trade has to be anxious to see us break out or down from this range," he said. July robusta coffee fell $4, or 0.2 percent, settling at $1,825 a tonne.
May raw sugar fell 0.28 cent, or 2.2 percent, to settle at 12.41 cents a lb, extending losses after the biggest drop in prices since January on Monday, as speculator sales picked up amid a weakening technical outlook.
It fell as low as 12.37 cents a lb, its lowest level since April 7. "The speculators that got in on the move up got out when it reversed," said Phil Pia, broker at Societe Generale in New York, noting that the decline in total open interest on Monday signalled speculator liquidation, which was likely continuing today. "The market's trying to find the bottom of a new range now," he added. ICE August white sugar fell $3.40, or 0.9 percent, settling at $357.40 a tonne.
New York July cocoa fell $5, or 0.2 percent, to settle at $2,775 a tonne, pressured by concerns over weak demand after soft grindings data last week. Dealers also referred to reports of hefty supplies from Ivory Coast, the world's top cocoa producer. Year-to-date Ivorian cocoa arrivals were seen at 1.3 million tonnes by April 19, higher than the previous season. July London cocoa lost 3 pounds, or 0.2 percent, settling at 1,926 pounds a tonne.