London cocoa futures slide after setting record high

London cocoa futures on ICE turned sharply lower on Tuesday after setting a record peak while robusta coffee prices rose to the highest level in more than 16 years.

COCOA

* July London cocoa C2! fell 2.85% at 8,620 pounds a metric ton by 1340 GMT after hitting a record 9,025 pounds earlier in the session.

* Dealers said prices remained very volatile partly due to a lack of liquidity as the extreme conditions deterred trade.

* First-quarter cocoa grind data for Europe and North America is due to be issued on Thursday with year-on-year declines expected.

* Dealers said any fall would be seen as predominately a reflection of a shortage of beans rather than an indication that high prices are beginning to curb demand.

* July New York cocoa CC2! fell 2.9% to $10,254 a ton.

COFFEE

* July robusta coffee RC2! was up 0.7% at $3,978 a metric ton after peaking at $4,036, the highest level since the current form of the contract started trading in 2008.

* Dealers said supplies in Vietnam were very tight while dry weather threatens to reduce the size of the next crop in the world's top robusta producer.

* July arabica coffee KC2! rose 0.1% to $2.2700 per lb.

* Dealers noted the recent run-up in arabica prices had been driven by fund buying against the backdrop of falling ICE certified stocks.

SUGAR

* May raw sugar SB1! fell 2.4% to 19.54 cents per lb after falling to a 16-month low of 19.36.

* Dealers said stronger-than-expected sugar production in India and Thailand had put the market on the defensive.

* Recent rains in Brazil has also improved the outlook for cane production in the 2024/25 season.

* August white sugar SF1! fell 2.1% to $568.00 per ton.

* A total of 313,950 tons of white sugar has been tendered against the May contract on ICE Futures Europe, exchange data showed on Tuesday.