LONDON: Cocoa futures on ICE hit multi-month lows on Monday on improved weather in top producing region west Africa and as exchange stockpiles hit six-month highs.

Raw sugar also fell, while coffee prices edged up.

Cocoa

July New York cocoa fell 1.4% to $2,408 a tonne at 1204 GMT, having hit its lowest level since early December at $2,399.

Dealers said industry had begun to cautiously hedge cocoa for next season but cited a continued risk that speculative funds may move to add more short positions.

ICE exchange stocks meanwhile hit six-month highs of 5.186 million 60 kg bags on Tuesday, data showed.

Traders were also focusing on improved crop prospects due to benign weather in top producer Ivory Coast.

September London cocoa fell 1% to 1,736 pounds per tonne.

Raw sugar edges up as India restricts sugar exports

Sugar

July raw sugar fell 0.8% to 19.60 cents per lb.

India could start sugar’s new marketing year on Oct. 1 with carry forward stocks of 6.2 million tonnes even after exporting a record 10 million tonnes, the food ministry said.

On Tuesday India imposed restrictions on sugar shipments for the first time in six years by capping this season’s exports at 10 million tonnes.

Dealers said the India export cap was not hugely restrictive and was somewhat offset by news that Brazil’s President Jair Bolsonaro, in a bid to keep energy price rises in check, has ousted the new Petrobras CEO.

Low energy prices tend to prompt cane mills in Brazil to ramp up sugar output at the expense of ethanol, a cane-based biofuel.

August white sugar rose 0.1% to $557.20 a tonne.

Coffee

July arabica coffee edged up 0.1% to $2.1420 per lb, having hit its lowest since mid-May at $2.1100 on Tuesday.

July robusta coffee rose 0.2% to $2,047 a tonne.