London cocoa futures fell to a fresh three-month low on Thursday as beneficial rains in top producer Ivory Coast improved crop prospects, dealers said. White sugar ended lower with the market hovering just above a 21-month low set earlier this week while robusta coffee ended slightly down but well within its recent range.
"Rains in Ivory Coast are the focus of interest," one London cocoa dealer said. December finished down 26 pounds at 973 pounds a tonne after touching 967 pounds, the lowest level for the second month since May 1.
Dealers said the market appeared to have resumed its recent downward trend after Wednesday's upside technical correction with little sign of any significant industry buying despite the drop in prices. White sugar futures finished lower on hedge selling against a large EU sugar tender tonnage award of 169,000 tonnes at a maximum rebate of 41.751 euros per 100 kg.
October finished down $1.60 at $282.00 a tonne. The contract dipped to $280.10 on Wednesday, a 21-month low for the front month. "We're seeing some hedge selling after the tender award," one trader said after trading volumes shot up in the afternoon following the tender.
Dealers said there was a slight bounce earlier in the day with the market technically oversold after its recent tumble. A global oversupply of sugar, driven by higher production in Brazil and India, remains the main driving force behind the market's recent weakness.
COFFEE LOWER: Robusta coffee ended slightly lower although prices remained well within their recent range. "We're in limbo," one dealer said. Dealers said speculative selling had been weighing on the market but trade buying was emerging around the lows.
November finished down $5 at $1,843. The contract had traded between $1,777 and $1,892 since mid-July and is currently stuck around the middle of that band.