April 25, 2017 / 11:38 AM / 3 years ago

SOFTS-Robusta coffee sets 7-1/2 month low, cocoa also weaker

LONDON, April 25 (Reuters) - Robusta coffee futures on ICE fell to a 7-1/2 month low on Tuesday on technically-driven selling by funds as the market extended its recent sharp decline.

COFFEE

* July robusta fell $39, or 2.0 percent, to $1,897 a tonne by 1121 GMT after dipping to a low of $1,891, the weakest for the second position since Sept. 12.

* Dealers said investment funds were continuing to liquidate long positions with technical indicators increasingly bearish after the recent fall in prices.

* “The indicators are firmly on the downside after recent price action,” Sucden Financial research analyst Geordie Wilkes said in a market note.

* July arabica coffee rose 0.1 cents, or 0.1 percent, to $1.32 per lb.

COCOA

* July London cocoa fell 12 pounds, or 0.8 percent, to 1,412 pounds a tonne.

* Traders said the market was drifting back down towards Thursday’s four-year low of 1,372 pounds,

* They noted port arrivals in top grower Ivory Coast were running well above levels a year earlier, reinforcing sentiment there will be a huge global surplus this season.

* “These strong arrivals highlight the surplus environment that the global cocoa market is in,” ING said in a market note.

* Cocoa-growing countries must coordinate production strategies to confront a sharp drop in prices that has hit farmers and government coffers hard, the International Cocoa Organization (ICCO) chairman said on Monday.

* Ghana, the world’s number two cocoa producer, has missed out on nearly $1 billion in export earnings due to a steep decline in global cocoa prices, the CEO of Ghana Cocoa Board (Cocobod) said on Monday.

* July New York cocoa fell $2, or 0.1 percent, to $1,814 a tonne.

SUGAR

* July raw sugar fell a marginal 0.01 cent, or 0.1 percent, to 16.31 cents per lb. The contract fell to a low of 16.17 cents on Monday, the weakest for the second position since May 9, 2016.

* Dealers said the market could consolidate in the short-term just above 16 cents per lb.

* August white sugar was down $0.10 at $469.10 a tonne. (Reporting by Nigel Hunt; editing by David Clarke)

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