LONDON: ICE arabica coffee futures fell on Tuesday after earlier matching a one-year high, as a weakening Brazilian real prompted producers to sell. Raw sugar prices also slid.

March arabica coffee futures were down 2.7 cents, or 2.2%, at $1.1620 per lb at 1441 GMT, after earlier matching Monday’s one-year peak of $1.1905.

The Brazilian real hit its weakest versus the dollar seen in Reuters records dating back about 25 years. A weak real increases the value of dollar-priced coffee in local currency terms, tempting producers to sell.

Arabica is benefiting overall however from declines in ICE certified stocks, which are near their lowest in nearly a year and a half.

A global deficit is widely forecast in the 2019/20 season, an off-year in top producer Brazil’s biennial crop cycle.

January robusta fell $3, or 2.5%, to $1,400 a tonne.

Uganda’s coffee exports rose 7.8% in October from a year earlier, helped by higher yields from robusta trees, the regulator UCDA said.

March raw sugar fell 0.07 cents, or 0.6%, to 12.75 cents per lb.

Fund short-covering has provided support to sugar in the past few days, but producer selling and a weakening real is keeping a cap on gains.

Dealers said many are now questioning whether the market can break above 13 cents, particularly if the real continues to weaken.

Mills in top producer Brazil’s center-south region produced 786,000 tonnes of sugar early in November, 11% less than a year earlier, industry group Unica said.

March white sugar was flat at $342.40 a tonne.

March New York cocoa was up $56, or 2.2%, at $2,611 a tonne, heading back towards last week’s 1-1/2 year high.

Cocoa arrivals at ports in top grower Ivory Coast reached 607,000 tonnes between Oct. 1 and Nov. 24, exporters estimated, down 2.9% from the same period of last season.

Prices have been boosted of late by a strengthening in nearby premiums in both New York and London cocoa, indicating tight nearby supply.

Below-average rainfall mixed with sunny spells in most Ivorian cocoa regions last week has helped growing conditions, though more rains will be needed next month as temperatures rise.

March London cocoa was up 28 pounds, or 1.5%, at 1,942 a tonne, helped by a weaker British currency.—Reuters