Arabica coffee at four-week low

Arabica coffee futures on ICE fell to a four-week low on Tuesday, dropping for the third straight session on fund and chart-based selling, and pressure from the weak currency in top grower Brazil. Raw sugar futures were flat, consolidating after a three-day slump, though the spot white contract's price sank against August ahead of next week's expiry. Cocoa prices turned higher as the London market was buoyed by the weak British pound , after falling to six-week lows on improving supply prospects in West Africa.
Arabica coffee prices extended losses below their 50-day moving average after settling below the 200-day moving average on Monday, while disappointed funds liquidated long positions and weakness in the Brazilian real against the US dollar encouraged broader selling. "Funds got too long. Overall the bullish arguments that you had at the beginning of the year just didn't happen," said Rodrigo Costa, director of coffee for Societe Generale in New York.
May arabica coffee settled down 1.9 cent, or 1.6 percent, at $1.209 per lb, after falling to $1.2055, the lowest since March 10. May robusta coffee settled down $17, or 1.2 percent, at $1,457 per tonne. Raw sugar found technical support and consolidated after three sharply lower sessions took it to a 3-1/2-week low on Monday, traders said. ICE May raw sugar closed flat at 14.64 cents per lb, not far from Monday's low of 14.61 cents a lb, the lowest level since March 10.
The March white sugar contract, however, fell sharply against the August contract. The discount of the May contract fell as low as $4.80, a steep fall from the $6.60 premium reached just three sessions prior, potentially indicating a lack of nearby demand ahead of the contract's expiry on April 15. March open interest was at a heavy 31,718 contracts as of April 4. ICE May white sugar ended down $3.90, or 0.9 percent, at $419.30 per tonne. New York May cocoa settled up $11, or 0.4 percent, at $2,882 per tonne, after touching a six-week low of $2,841. London July cocoa settled up 23 pounds, or 1.1 percent, at 2,146 pounds per tonne, turning higher after tapping 2,106 pounds per tonne, also a six-week low.