LONDON: Arabica coffee futures on ICE fell to a six-week low on Thursday while raw sugar also weakened as a stronger dollar and a sharp setback in crude oil weighed on prices.
COFFEE
September arabica coffee fell 2.35 cents, or 2.4pc, to 97.30 cents per lb by 1355 GMT after slumping to a six-week low of 96.60 cents.
Dealers said the market was being driven on Thursday largely by broader macroeconomic influences.
The possibility that funds could rebuild a net short position also remained a bearish factor.
"It is the beginning of the month and it wouldn't surprise me if they (funds) added some more short positions," one London dealer said.
Fund short-covering has helped to fuel a rebound in prices during the past couple of months, but the run-up has stalled and the speculative net short had begun to rise again.
September robusta coffee was down $32, or 2.4pc, at $1,306 a tonne.
Vietnam's domestic coffee prices edged higher this week on low supplies, but traders said domestic prices would not rise further as the new harvest season would begin soon.
SUGAR
October raw sugar fell 0.14 cents, or 1.15pc, to 12.07 cents per lb.
Dealers said a stronger dollar and weaker crude oil prices were among factors weighing on the market.
They noted that India's crop outlook had been dented by a slow start to this season's monsoon.
"The monsoon rains have caught up to a great extent but for the 2019/20 crop the damage has already been done," broker Marex Spectron said in a report.
October white sugar was down $0.10, or 0.03pc, at $323.90 a tonne.
COCOA
September London cocoa rose 3 pounds, or 0.2pc, to 1,828 pounds a tonne, underpinned by sterling weakness.
September New York cocoa fell $15, or 0.6pc, to $2,330 a tonne.
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