LONDON: Robusta coffee futures on ICE were lower on Wednesday, slipping back from the prior session’s 4-1/2 year high, while sugar and cocoa prices also fell, weighed by broad-based weakness in equity and commodity markets.
January robusta coffee was down 1% to $2,247 a tonne by 1142 GMT, slipping back from a 4-1/2 year peak of $2,278 set on Tuesday.
Dealers said the market was struggling to overcome resistance around the peak of $2,279 set in February 2017 and could fall back further in the short-term.
The market remained underpinned, however, by disruptions to the flow of supplies from top robusta exporter Vietnam linked to a shortage of shipping containers.
December arabica coffee fell 0.05% to $2.08 per lb.
Robusta coffee hits 4-1/2 year high, arabica also up
March raw sugar fell 0.25% to 19.61 cents per lb.
The market was underpinned, however, by data issued on Tuesday by cane industry group Unica which showed production in Centre-South Brazil was falling more sharply than had been anticipated.
“The cumulative impact of extended dryness and multiple frosts were there to see in the form of lower cane crush and lower sugar recoveries. But both crush and recovery were even worse than expected,” Commonwealth Bank of Australia analyst Tobin Gorey said in a note.
December white sugar fell 0.02% to $511.20 a tonne.
March London cocoa fell 0.85% to 1,753 pounds a tonne after slipping to a low of 1,746 pounds – the weakest price for the benchmark second position since Sept. 1.
Dealers said an improving outlook for the main crop in top producer Ivory Coast continued to weigh on prices.
December New York cocoa fell 0.5% to $2,567 a tonne.