SOFTS-Coffee falls after strong recent gains; cocoa plunges

NEW YORK, Nov 19 (Reuters) - Robusta coffee futures on ICE slipped on Wednesday after strong gains in the two previous sessions on the back of floods in top grower Vietnam and bets on stronger demand from the United States, while cocoa futures plunged.

COFFEE

Robusta coffee LRCc2 settled down $57, or 1.2%, at $4,516 a metric ton, having surged 6.2% on Monday and a further 2% on Tuesday.

A new round of floods and landslides triggered by torrential rain in central Vietnam since the weekend has killed at least eight people, a government report said, with traders also warning the ongoing coffee harvest could be hampered.

"Some coffee farms in low-lying areas of Dak Lak are deep in floodwater," a coffee trader based in the province said.

Another Vietnam-based dealer noted the coffee region is already saturated from the previous typhoons and that more rainfall is expected through to November 20.

Arabica coffee KCc2 fell 3.3% at $3.7485 per lb.

There is a forecast for beneficial rains in top arabica grower Brazil starting over the weekend.

COCOA

London cocoa LCCc2 settled down 250 pounds, or 6.1%, to 3,866 pounds per ton after slumping to a low of 3,842 pounds, the weakest level since February 2024.

Dealers said the decline gathered momentum after psychological support around 4,000 pounds was breached.

They noted price charts remained bearish with the market now below key moving averages.

"The dominant trend remains firmly downward until the contract can reclaim the 10- and 40-day moving averages," broker Sucden Financial said in a note.

New York cocoa CCc2 lost 6% to $5,104 a ton.

SUGAR

Raw sugar SBc1 ​settled down 0.04 cents, or 0.3%, at 14.66 cents per lb.

Sugar supplies are ample with a global surplus anticipated in the current 2025/26 season, partly due to favourable weather in key Asian producing countries.

No. 2 sugar grower India is considering raising the floor price for sugar sales in the domestic market as part of efforts to help mills saddled with surplus stocks, sources said.

White sugar LSUc1 was little changed at $419.90 a ton.