New York cocoa extends losses to 4-1/2 months low

New York cocoa futures on ICE fell for the second straight day on Tuesday, dropping to a 4-1/2-month low while the London market dropped to a five-week trough, with both markets pressured by chart-based selling after falling below key levels.
September New York cocoa settled down $42, or 1.8 percent, at $2,257 per tonne, after falling to the lowest since March 1 at $2,246. Chart-based selling pressured prices after the September contract closed below the 200-day moving average on Monday, while a lack of commercial buying also helped prices fall, traders said.
The market shrugged off signs of renewed demand in North America, with Swiss chocolate maker Lindt & Spruengli saying improvement in the region helped accelerate its organic growth in the first half of the year. September London cocoa settled down 25 pounds, or 1.5 percent, at 1,653 pounds per tonne, after falling to 1,648 pounds, the lowest for the spot contract since June 14.
Technical selling pressured prices after September fell below its 200-day moving average, traders said. October raw sugar settled up 0.11 cent, or 1 percent, at 11.19 cents per lb, trading within the prior session's range. Concerns about dry weather in top grower Brazil's main growing region lent support along with a firmer Brazil real which discourages producer selling in the world's biggest producer.
October white sugar settled up $2.10, or 0.7 percent, at $326.10 per tonne. September arabica coffee settled down 0.7 cent, or 0.6 percent, at $1.1095 per lb. The market shrugged off the stronger currency in top grower Brazil with focus on expectations for a large crop there. Brazil's 2018 coffee crop is showing excellent quality together with the high output, says Brazil's coffee processor association Abic.
Arabica futures total open interest jumped by 4,170 lots to a record 317,803 lots on Monday, ICE data showed. September robusta coffee settled up $7, or 0.4 percent, at $1,693 per tonne. ICE intervened in the robusta market to cap a sharp jump in the premium between the July and September contracts, several trade sources told Reuters.