-Robusta extends losses below 2-year high

NEW YORK/LONDON: ICE raw sugar futures fell to the lowest in nearly a month on Thursday, breaking below a two-week trading range and triggering selling after falling beneath recent session lows.

Cocoa prices were little changed, as the market shrugged off strong grind data in Asia and awaited third-quarter processing figures from North America, scheduled for 4 p.m. EDT (2000 GMT). Coffee prices fell for the second straight day.

March raw sugar settled down 0.33 cent, or 1.4 percent, at 22.62 cents per lb, after reaching 22.35 cents, the lowest for the front position since Sept. 26.

The weak session pushed prices below a short-term 38.2 percent Fibonacci retracement level, which coincided with recent session lows, where chart-based selling triggered further losses, traders said.

“A lot of people came out to the London sugar dinner (earlier this month) with the view that there is nothing new and that the market needs new, fresh, bullish news,” a dealer said.

December white sugar settled down 70 cents, or 0.1 percent, at $593.40 per tonne.

Cocoa futures initially rose, shortly after data showed Asia’s third-quarter cocoa grind jumped 12.45 percent year-over-year, but turned lower as the market awaited North American grind data.

Traders estimate a 2-3 percent rise from the third quarter of 2015.

“The demand news is bullish from Asia, and what we have been waiting for in the supply and demand equation,” said Peter Mooses, senior market strategist for RJO Futures in Chicago.

“Even technically we have built a channel in the New York December cocoa futures setting us up for a breakout higher, but futures are waiting for the West African output to really see where prices should be at, in my opinion.”

March New York cocoa settled down $11, or 0.4 percent, at $2,630 per tonne.

Despite the weak session, December’s premium to March jumped to a contract high premium of $93 premium, from $60 on Monday.

March London cocoa settled up 1 pound, or 0.05 percent, at 2,181 pounds per tonne.

“On face value the (Asian) grind data would suggest that demand is fairly strong, but it really only confirms what the processors are doing locally,” one London-based dealer said.

Coffee futures turned lower, with robusta coffee slipping further from Wednesday’s two-year high at $2,161 per tonne.

January robusta coffee settled down $7, or 0.3 percent, at $2,122 per tonne.

December arabica coffee settled down 1.95 cent, or 1.2 percent, at $1.559 per lb.—Reuters