ICE arabica coffee tumbled to close down 3 percent on Monday, giving back gains from Friday, when the market closed at a 13-year high on supply concerns. Cocoa futures fell quietly following a peaceful election in top grower Ivory Coast on Sunday. Sugar reversed higher with the raws closing at a nine-month high, in reach of the psychological level of 30 cents a lb and with the potential to hit a 30-year high above 30.4 cents.
Arabicas consolidated after a strong close at a 13-year top on Friday failed to attract follow-through buying and spurred long liquidation instead, dealers said. ICE December arabica futures tumbled 5.75 cents, or 2.8 percent, to finish at $1.9770 per lb. It was an inside day that gave back gains from Friday, when the spot contract closed at $2.0345 per lb, a 13-year high.
The arabicas market has been underpinned by years of lower than expected production from Colombia. ICE December cocoa fell $38 to settle at $2,759 per tonne, closing down for the fifth straight session. ICE March raw sugar futures rose 0.33 cent, or 1.1 percent, to close at 29.45 cents per lb, the loftiest finish for the spot contract since January 29.