LONDON: Robusta coffee futures on ICE hit new ten-month lows on Monday amid increased supply from major producers in Vietnam and Indonesia, although improving sentiment on financial markets in the broad sense has made it possible to limit the losses.
COFFEE
September robusta coffee fell 0.2% to $2,002 a tonne, after hitting its lowest since late August last year at $1,998.
Global stocks rose Monday in trade thinned by a U.S. holiday, benefiting from a recovery in oil prices as worries about tight supply helped balance recession fears.
Robusta coffee speculators reduced their net long position from 4,810 lots to 16,762 lots as of June 28, the data showed.
Traders said the funds had likely further reduced their net long position in robusta since then, noting rising exports from Vietnam, the world’s top producer of robusta.
Vietnam’s coffee exports are estimated to have risen 13.3 percent year-on-year in June and 21.7 percent in the first six months of this year, according to data released last week. the data showed. Indonesia is the world’s third largest producer of robusta.
COCOA
London Cocoa in September fell 0.2% to 1,712 pounds a tonne, after hitting its lowest level since early March at 1,700.
Cocoa is under pressure due to fears that soaring inflation will slow global growth and depress demand. Meanwhile, rain in Ivory Coast, the top producer, is helping the main harvest ahead.
Above-average rainfall last week in some cocoa-growing areas of Ivory Coast will help cocoa trees, but more sunshine would be needed to bolster development of the next main crop, farmers said on Monday.
SUGAR
White sugar in August rose 0.8% to $553.80 a tonne. White sugar speculators reduced their net long position from 4,456 lots to 21,590 lots as of June 28, according to exchange data.
