LONDON: Arabica coffee futures fell on Monday, pressured by forecasts
for rains in Brazil, while raw sugar held near a two-month high touched
earlier this month, buoyed by expectations for a tighter market.
Dollar-based New York cocoa futures edged up, supported by a firmer pound against the dollar.
December arabica coffee was down 1.05 cents, or 0.8 percent, at $1.2480 per lb at 1337 GMT, well below an eight-week high of $1.376 touched on Oct. 12.
Arabica prices fell on forecasts for wet weather in Brazil, improving prospects for the flowering of crops, with a weak Brazilian currency also contributing to selling pressure.
A softer real increases local currency returns to Brazilian producers from dollar-based coffee sales, encouraging producer selling.
Dealers said they expected high volatility in futures prices in the coming weeks, driven by uncertainty over the weather outlook in Brazil.
"We're in for a bumpy ride at least until the end of October," one European coffee trader said.
November robusta coffee futures eased by $1, or 0.06 percent, to $1,612 a tonne.
Raw sugar futures held steady after U.S. Commitments of Trade data on Friday showed that speculators and funds had extended their net long position, as expected.
"Producers (especially in Brazil) are keen to capture high real per tonne prices seen in 2016/17," analyst Green Pool said in a weekly report.
ICE March raw sugar was down 0.12 cents, or 0.8 percent, at 14.15 cents per lb, not far from the eight-month high of 14.43 cents hit on Oct. 9.
"We are bullish and would look to buy any decent pullbacks with confidence," said Mark Cooper, co-head of the softs department at Sucden Financial Sugar.
December white sugar was down $3.10, or 0.8 percent, at $386.40 a tonne.
New York December cocoa firmed $12, or 0.4 percent, to $3,131 a tonne and London December cocoa gained 11 pounds, or 0.5 percent, to 2,128 pounds a tonne.
"Trading volumes have struggled to improve in recent weeks and this lack of activity could precipitate moves on the downside on any breach of immediate support," said Kash Kamal, a senior research analyst with Sucden Financial, referring to the London market.
Dollar-based New York cocoa futures edged up, supported by a firmer pound against the dollar.
December arabica coffee was down 1.05 cents, or 0.8 percent, at $1.2480 per lb at 1337 GMT, well below an eight-week high of $1.376 touched on Oct. 12.
Arabica prices fell on forecasts for wet weather in Brazil, improving prospects for the flowering of crops, with a weak Brazilian currency also contributing to selling pressure.
A softer real increases local currency returns to Brazilian producers from dollar-based coffee sales, encouraging producer selling.
Dealers said they expected high volatility in futures prices in the coming weeks, driven by uncertainty over the weather outlook in Brazil.
"We're in for a bumpy ride at least until the end of October," one European coffee trader said.
November robusta coffee futures eased by $1, or 0.06 percent, to $1,612 a tonne.
Raw sugar futures held steady after U.S. Commitments of Trade data on Friday showed that speculators and funds had extended their net long position, as expected.
"Producers (especially in Brazil) are keen to capture high real per tonne prices seen in 2016/17," analyst Green Pool said in a weekly report.
ICE March raw sugar was down 0.12 cents, or 0.8 percent, at 14.15 cents per lb, not far from the eight-month high of 14.43 cents hit on Oct. 9.
"We are bullish and would look to buy any decent pullbacks with confidence," said Mark Cooper, co-head of the softs department at Sucden Financial Sugar.
December white sugar was down $3.10, or 0.8 percent, at $386.40 a tonne.
New York December cocoa firmed $12, or 0.4 percent, to $3,131 a tonne and London December cocoa gained 11 pounds, or 0.5 percent, to 2,128 pounds a tonne.
"Trading volumes have struggled to improve in recent weeks and this lack of activity could precipitate moves on the downside on any breach of immediate support," said Kash Kamal, a senior research analyst with Sucden Financial, referring to the London market.
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