Cocoa and coffee hit profit-taking and sugar fell to near 2010 lows.

Cocoa and coffee hit profit-taking and sugar fell to near 2010 lows.

2013-01-23 08:38 Source: Reuters trial mobile platform

Coffee and cocoa in New York fell on Tuesday, fearing their biggest one-day decline in more than two months, hit by profit-taking and sugar prices hovering near 2010 lows as investors closed their positions at a time of growing oversupply.

Arabica coffee futures fell from a two-and-a-half-year high of around $1.58 on Friday as volume opened after a long weekend holiday in the United States.

"Today is the beginning of the week, and there are some profit-taking, snowball effects," said HectorGalvan, senior market strategist at RJOFutures.

1754GMT, March Arabica coffee futures fell 6.9 cents, or 4.41 percent, to $1.494 a pound, likely to record the biggest one-day drop in recent months since Nov. 20.

March Robusta coffee futures fell $2, or 0.1%, to $1968 a tonne, peaking at $1989 on Friday, the highest level for the next month since Nov. 2.

ICE cocoa futures posted their biggest one-day decline in three months, revised after hitting an one-month high on Friday.

ICE- March cocoa futures closed down $73, or 3.15 percent, at $2213 a tonne.

London May cocoa futures settled down 32 pounds, or 2.2 percent, at 1448 pounds per ton.

Raw sugar futures are still under pressure. ICE- March raw sugar futures fell 0.07 cents, or 0.38 percent, to 18.30 cents a pound, hitting 18.25 cents earlier, the lowest level for a recent month contract since August 2010.

Brazil, the largest producer of sugar, is nearing the end of the sugar crushing season, and the focus has shifted to the new season, which is expected to exceed the high yield in 2012 / 13.

London March sugar futures fell $3.70, or 0.76%, to close at $486.1 a tonne, after earlier falling as low as $485.5, the lowest level for recent-month contracts since June 2010.

(responsible Editor: coffee vera)