NEW YORK/LONDON: Robusta coffee futures on ICE slid to a 7-1/2-month low on Tuesday, pressured by chart-based selling as the market suffered its biggest five-day slump since 2011. Arabica coffee bounced up from a 10-1/2-month low after four straight sessions lower.

July robusta settled down $20, or 1 percent, at $1,916 per tonne after dipping to $1,871, the weakest for the second position since Sept. 6.

Dealers said investment funds continued to liquidate long positions with technical indicators increasingly bearish after robusta futures fell roughly 12 percent in the past five sessions and slumped below the 200-day moving average.

“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 settled up 0.5 cent, or 0.4 percent, at $1.324 per lb, after tapping $1.305, the lowest since early June.

Traders said the move appeared to be a correction after falling more than 9 percent the previous four sessions.

July London cocoa settled up 26 pounds, or 1.8 percent, at 1,450 pounds per tonne.

Dealers said the market was consolidating just above 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 expectations there will be a huge global surplus this season.

July New York cocoa settled up $36, or 2 percent, at $1,852 per tonne, hovering above last week’s 9-1/2-year low.

BMI Research said in a note that it revised downward its cocoa price forecasts in the first half of 2017 to “bottom and trade sideways” but to strengthen in the fourth quarter as fundamentals tighten.

July raw sugar settled down 0.04 cent, or 0.3 percent, at 16.28 cents per lb, just above the lowest level in nearly a year reached on Monday at 16.17 cents. Dealers said the market could consolidate in the short term just above 16 cents per lb.

The May contract maintained a small discount to July ahead of its expiry on Friday with little clear indication yet on the likely size of deliveries.

August white sugar settled down 20 cents, or 0.04 percent, at $469 per tonne.—Reuters