Arabica coffee futures slide, cocoa also down

SourceZawya
SectorFinancial Markets
CountryMiddle east

NEW YORK/LONDON: Arabica coffee futures on ICE were sharply lower on Monday as lockdowns to slow the spread of COVID-19 raised concerns about the demand outlook, with rising exchange stocks and weakness in Brazil's real currency also bearish factors.Cocoa futures also closed down, while raw sugar ended up.COFFEE* March arabica coffee settled down 2.25 cents, or 1.8%, at $1.2145 per lb, after dipping to a low of $1.1910 earlier in the session, the weakest for the front month since mid-December.* Dealers said Brazil's real currency, which fell to its weakest since November, exerted downward pressure on prices.* A weak real boosts dollar-denominated prices in local currency terms in Brazil and can spark producer selling in the world's top coffee producer.* Dealers said the recent rise in certified stocks also weighed on the market. Certified arabica stocks rose to 1.49 million bags on Monday.  * March robusta coffee settled down $3, or 0.2%, at $1,315 a tonne.COCOA* March New York cocoa  settled down $36, or 1.4%, to $2,480 a tonne on concerns that coronavirus lockdowns across Europe could further curb demand while upcoming fourth-quarter grind data would be closely monitored.* "Origin has ample supplies to sell right now. There are a ...read more...