Robusta coffee fell to the lowest price in almost two months in London as computer-generated trading continued to sell amid declining stockpiles. Cocoa slid.
The beans for September delivery were $30 a metric ton cheaper than the November futures, reversing the premium of $33 a ton two weeks ago, exchange data on Bloomberg showed. While that may signal less concern about supplies, NYSE Liffe-monitored stockpiles are at the lowest since August 2007.
“Robusta looks towards the major support at $1,704 a ton,” BGC Partners LLC in London said in a report e-mailed today, adding that resistance was at $1,857 a ton. “Sentiment has shifted somewhat it would seem, but the directional black boxes will still be trading the bear trend. Perhaps it will take a look towards $1,700 a ton before this trend will be bucked?”
Robusta coffee for November delivery declined 0.3 percent to $1,759 a ton by 11:08 a.m. on NYSE Liffe in London. It declined 0.7 percent to $1,752 a ton in earlier trade, the lowest since July 1. Arabica coffee for delivery in December was unchanged at $1.1845 a pound on ICE Futures U.S. in New York.
Robusta coffee stockpiles with a valid grading certificate in warehouses monitored by NYSE Liffe were 78,750 tons on Aug. 19. Inventories were down from 83,770 tons two weeks earlier. Reserves may fall to 52,000 tons before the end of the year, the lowest since May 2000, according to a Bloomberg survey of 10 traders published on Aug. 27.
While the new crop in Vietnam, the top producer of the variety, is set to start in October, the first beans will be available at the end of November, Nguyen Chi Cuong, chief executive officer at trading company NC Group Ltd., which has offices in Ho Chi Minh City, said by e-mail today.
“There are some three months to go relying entirely on the current crop,” Cuong said, adding that the market would be more reliant on inventories in traders’ warehouses and reserves in consuming countries.
White sugar for delivery in October gained 0.3 percent to $479.20 a ton on NYSE Liffe. Raw sugar for delivery in the same month rose 0.3 percent to 16.49 cents a pound on ICE.
Cocoa for delivery in December slid 0.2 percent to 1,651 pounds ($2,560) a ton in London. Cocoa for delivery in the same month declined 0.4 percent to $2,488 a ton in New York.