April 11, 2019 / 6:35 PM / 2 months ago

SOFTS-Arabica coffee crashes to fresh 13-year low

 (Recasts throughout; updates prices; adds market activity,
comments, NEW YORK to dateline)
    NEW YORK/LONDON, April 11 (Reuters) - Arabica coffee futures
on ICE plunged to a new 13-year low on Thursday, as a weaker
Brazilian currency compounded the market's challenges with
oversupply, while New York cocoa fell as a recent rally lost
    * May arabica coffee        settled down 4 cents, or 4.2
percent, at 90.25 cents per lb after slumping to 90.15 cents,
its lowest in over 13 years.
    * This was its biggest daily percentage drop since late
November, as a weaker currency in top-grower Brazil, the
impending options expiry, and continued oversupply dragged the
market lower.  
    * The Brazilian real weakened against the U.S. dollar, which
can encourage producer selling in the top-grower.        
    * May options expire on Friday, which was pressuring the
market, especially given the number of open puts around the
90-cent level, dealers said. 
    * Massive Brazilian exports of both arabica and robusta
beans continued to weigh on coffee markets, dealers noted.
Brazilian coffee exports last month were 14.2 percent higher
than in March 2018, exporters association Cecafé said on
    * Terra Forte, a top Brazilian coffee exporter, filed for
bankruptcy protection in a Sao Paulo state court, lawyers for
the company said on Wednesday.             
    * May robusta coffee         settled down $16, or 2.3
percent, at $1,392 a tonne, after touching a three-year low of
    * Exports from top robusta producer Vietnam have also been
    * May New York cocoa        settled down $55, or 2.3
percent, at $2,388 a tonne after earlier hitting a nine-month
high of $2,454.
     * "We had an outside reversal day down and some longs are
taking profits here," and there was now the technical set up for
going short, one U.S. trader said. 
    * For the first time in over a week, the market was no
longer technically overbought on the relative strength index. 
    * The recent rally has been fueled by speculative
short-covering against the backdrop of concerns about dry
weather in top grower Ivory Coast.  
    * Still, Ivorian port arrivals so far this season are
running well above last year.             
    * May London cocoa         settled down 1 pound, or about
0.1 percent, at 1,809 pounds a tonne.
    *    May raw sugar        settled down 0.15 cent, or 1.2
percent, at 12.66 cents per lb.
    * The market continued to struggle to overcome producer
selling above 12.80 cents, with a run-up on Wednesday stalling
at 12.83 cents.
    * May white sugar         settled down $3.70, or about 1.1
percent, at $323.00 a tonne. 
    * The contract expires on Monday and dealers noted there was
little appetite to take delivery.

 (Reporting by Ayenat Mersie in New York and Nigel Hunt in
London; Editing by Jane Merriman and Tom Brown)
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