LONDON: Arabica coffee futures slipped on Monday after touching a 7-year peak on Friday while robusta also dipped after touching its highest in 10 years, though ongoing supply constraints kept losses in check.
Sugar and cocoa edged up.
Coffee
March arabica coffee slipped 0.3% to $2.2140 per lb by 1255 GMT, having touched its highest since October 2014 at $2.2385 on Friday.
Arabica prices remain underpinned by logistics delays in top producer Brazil, higher demand expectations, falling arabica stockpiles and potential dry weather next year due to a looming La Nina weather pattern.
"In addition to the shortage of ships, truck drivers (in Brazil) have now also gone out on strike. Shipping delays (out of Brazil) this year have already affected 3.7 million bags (of exports)," said Commerzbank in a note.
January robusta coffee fell 0.3% to $2,271 a tonne, having touched $2,313 on Friday, the highest since early September 2011.
Arabica coffee prices rise, cocoa and sugar also climb
Sugar
March raw sugar was flat at 20.01 cents per lb, having hit its highest in a month on Thursday.
Marex Spectron said sugar has many bullish drivers long term, not least the ethanol parity which it estimates at around 20.60 cents. It added, however, the spectre of Indian selling above 20.50 cents is capping prices for now.
Dealers said the technical picture remains positive but that funds are side-lined at the moment and looking for macro-economic signals to push sugar prices higher.
Algeria will impose a 9% value-added tax on white and raw sugar from early next year to reduce imports and address health issues, Prime Minister Ayman Benabderrahmane said.
December white sugar, which expires later this session, edged up 0.3% to $528.60 a tonne.
Cocoa
March New York cocoa rose 0.4% to $2,533 a tonne.
Cocoa arrivals at ports in top grower Ivory Coast reached 489,000 tonnes between Oct. 1 and Nov. 14, exporters estimated, down 10.9% versus the same period last season.
Dealers said the cocoa market is expected to be balanced this year versus a surplus last year, as demand is set to improve. They added, however, that supplies this season (Oct-Sept) look better than previously expected.
March London cocoa rose 0.5% to 1,711 pounds per tonne.