LONDON, Sept 6 (Reuters) - Cocoa futures on ICE fell on Wednesday under the pressure of deteriorating chart signals, while robusta coffee dropped to its lowest since May as speculators liquidated long positions and the focus shifted to the upcoming crop.
* December London cocoa was down 17 pounds, or 1.1 percent, at 1,502 pounds a tonne by 1134 GMT.
* December New York cocoa fell $20, or 1 percent, to $1,926 a tonne.
* Dealers said sentiment in the market weakened when prices failed to sustain a rally in the previous session, falling back slightly before the close.
* This had jolted those holding long positions and reaffirmed speculators with a bearish stance on the market, dealers said.
* With the move higher “rejected by the bears”, the technical structure had paved the way for further losses on Wednesday, said Sucden Financial technical analyst Geordie Wilkes.
* “Yesterday’s shooting star suggests we may see a retracement back to $1,820,” Wilkes said.
* November robusta coffee was down $5, or 0.3 percent, at $1,964 a tonne after hitting a session low of $1,947, the weakest for the second position since May 26.
* Prices were under pressure from speculators liquidating long positions, dealers said.
* Sentiment was also dampened by dwindling expectations for a supply squeeze, amid signs of ample production next season from top grower Vietnam.
* “Our Vietnamese friends are in line for a large crop,” said one dealer. “It’s going to be early, it’s going to be big and it’s going to be good.”
* September robusta, which is currently in a delivery period, was up $4, or 0.2 percent, at $1,987 per tonne.
* The premium for the spot contract over the November position widened to more than $50 in early trade, before falling back.
* December arabica coffee fell 0.10 cents, or 0.1 percent, to $1.926 per lb.
* October raw sugar was down 0.09 cent, or 0.6 percent, at 13.94 cents per lb.
* Prices posted sharp gains in the previous session after news that India planned to allow 300,000 tonnes of raw sugar imports.
* However, dealers noted rallies in the market continued to draw out producer hedging, which caps the potential for gains.
* While the size of the speculative short position has fallen back recently, the market also remained vulnerable to further fund selling, dealers said.
* October white sugar fell $1.70, or 0.5 percent, to $375.80 a tonne. (Reporting by Ana Ionova; editing by David Clarke)