OREANDA-NEWS. February 18, 2015. Arabica coffee slid more than five percent on Tuesday as heavy long liquidation by speculators triggered more widespread chart-based selling, while raw sugar eased and cocoa steadied.

Arabica's move that may have been sparked by one speculator reducing a large long position in moderate trading volumes, traders said.

"We think it's mainly spec liquidation," one London-based broker said. "It's very aggressive."

Rodrigo Costa, a broker with Societe Generale in New York, said, "It's specs liquidating long positions."

He added: "Producers are just doing some 'house cleaning' ahead of the notice period for delivery against the March contract and that triggered the technical selling."

ICE May arabicas were down 8.0 cents or 4.8 percent to \\$1.5850 per lb at 1534 GMT, having fallen to a session low of \\$1.5775 per lb, a one-year low basis second month.

May robusta coffee futures touched \\$2,077 per tonne, the highest level since Dec. 2, and later reversed direction in sympathy with arabicas to trade at \\$2,027 per tonne, down \\$39 or 1.9 percent.

Robustas had risen due to slow Vietnamese producer selling, combined with dry weather in some Brazilian conillon growing areas, said Carlos Mera, analyst with Rabobank.

ICE raw sugar futures dipped as the market readjusted after the U.S. Presidents Day holiday, and dealers expected light trading volumes due to the Carnival in top exporter Brazil.

"With Carnival being celebrated today and the Chinese Lunar New Year holidays about to begin, the only thing that might create further activity is tonight's March option expiry in New York with the 15 cent strike being the 'battleground,'" said Nick Penney, senior trader with Sucden Financial Sugar.

ICE March raw sugar futures were down 0.11 cent or 0.7 percent to 14.77 cents a lb.

May white sugar was down \\$2.60 or 0.7 percent to \\$388.40 per tonne.

Cocoa futures were little changed, underpinned by concerns over output in No. 2 grower Ghana.

ICE May cocoa futures were up \\$1 or 0.03 percent to \\$2,932 per tonne.

London May cocoa was up 18 pounds or 0.9 percent to 1,995 pounds per tonne.

"Short-term indicators suggest the potential for subsequent gains towards the key level of 2,000 pounds and January's high at 2,028 pounds," said Myrto Sokou, a senior research analyst with Sucden Financial.