NEW YORK/LONDON: New York cocoa on ICE Futures US fell for a fifth straight session on Tuesday, and hit a two-month low as expectations of oversupply offset strong demand data.

Sugar and coffee futures also retreated.

September New York cocoa fell to $1,791 before settling down $21, or 1.14 percent, at $1,817 per tonne, weighed by the strong pace of production in top grower Ivory Coast.

September London cocoa hit a two-month low of 1,424 pounds per tonne and finished down 13 pounds, or 0.89 percent, at 1,452 pounds.

The decline came as speculators focused on an upcoming surplus and continued their recent selling spree, shrugging off a solid demand data from Europe and Ivory Coast.

“It looks like some follow-through speculative selling,” said Jack Scoville, a vice president with Price Futures Group in Chicago. “Even with increased demand, there’s still going to be an outlook for an oversupply.”

Europe’s second-quarter cocoa grind rose by 2.1 percent from the same period last year to 331,850 tonnes, data showed on Tuesday, in line with dealers expectations for an increase of 2 percent to 3 percent.

Ivory Coast cocoa grinders processed 389,000 tonnes of beans by the end of June, up 14 percent versus the previous year, data showed on Tuesday.

Germany’s second-quarter cocoa grind was down 2.94 percent.

October raw sugar finished down 0.12 cent, or 0.88 percent, at 13.44 cents per lb. A short-covering rally took prices to a four-week high of 14.39 cents on Monday.

“So far an entire week’s gains have been wiped out, thus confirming that the rally was a technical one taking place in an oversold market,” Sucden Financial senior trader Nick Penney said in a note.

India this week raised import taxes on sugar, adding to a bearish outlook.

The European Commission forecast that the European Union’s white sugar production would reach 20.1 million tonnes in 2017-18, 20 percent above the current 2016-17 season.

August white sugar finished down by $2.80, or 0.7 percent, at $402.20 a tonne.

September robusta coffee settled down $28, or 1.33 percent, at $2,072 per tonne.

Top producer Vietnam exported 2.03 million 60-kg bags of coffee in June, unchanged from the prior month, the General Department of Vietnam Customs said on Tuesday, slightly above expectations.

September arabica coffee settled down 1.7 cents, or 1.32 percent, at $1.269 per lb after touching an over one-week low of $1.258.—Reuters