New York Futures: Robusta Coffee gives up its gains this week, sugar prices fall

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New YORK / London (Reuters)-ICE's Robusta coffee fell for a second straight session on Thursday, giving up this week's gains as raw sugar prices fell, but remained within the recent trading range.

In July, Robusta coffee closed down $40, or 2.9%, to $1335 a tonne, wiping out this week's gains.

Last week, the contract fell to a nine-year low of $1267.

The coffee market is under great pressure due to the large supply of Robusta coffee beans and Arabica coffee beans.

Coffee prices in Vietnam rebounded after falling to a six-year low last week, and coffee shipments from the country are expected to fall sharply this month.

Buoyed by speculative short covering and supportive production data, Arabica coffee closed up 0.35 cents, or 0.4%, to 91.65 cents a pound in July.

According to Conab, a Brazilian government agency, coffee production in Brazil is expected to reach 50.9 million bags (60 kg bags) this year, down 17% from last year.

However, the weakness of Brazil's currency has limited its gains. The Brazilian currency fell to its lowest level against the dollar since October. A weaker real will encourage producers to sell.

In July, raw sugar fell 0.07 cents, or 0.6%, to 11.78 cents per pound.

The price of white sugar fell $1, or 0.3%, to $325.60 a tonne in August.

In July, cocoa futures in London rose 46, or 2.7 per cent, to 1743 a tonne, after hitting a six-week low a day earlier.

New York's July cocoa contract settlement price rose $51, or 2.2 per cent, to $2372 a tonne, recovering this week's losses.