Robusta coffee sets new contract lows, system funds short

Robusta coffee futures weakened, with contract lows set in key positions, as the pressure on Vietnamese producers to sell increased and roasters appeared to be well covered, while cocoa was also in negative territory.

Dealers said fund liquidation of long positions had helped to fuel a sharp setback in raw sugar prices during the last month and some now appear to be going short.

« I’m hearing some of the funds are taking new short positions. If that is the case you could see this market come off a bit more, » one London dealer said.

Dealers said there was also heavy buying of put options on May raws at strike prices well below current prices, indicating some believed there was scope for prices to fall further.

Source : news-alibaba