Monday, 16 November 2015 20:58
LONDON: Cocoa futures in London set a new 4-1/2 year high on Monday, supported by concerns that dry weather could reduce production in top grower Ivory Coast and by lower arrivals data.
Raw sugar on ICE dipped, pressured by a firming of the dollar after the weekend Paris attacks.
Arabica coffee was little changed, with a focus on weather in top grower Brazil, while robusta steadied.
Cocoa pursued its upward trajectory of the past few weeks as exporters estimated that about 47,000 tonnes of beans were delivered to the West African state’s ports of Abidjan and San Pedro from Nov. 9 to 15, down from 61,000 tonnes in the same period last year.
“The arrivals were down — that has spooked the market,” one London-based futures broker said.
London March cocoa was up 2 pounds, or 0.1 percent, at 2,290 pounds a tonne at 1501 GMT after peaking at 2,307 pounds, the highest for the benchmark second month since March 2011.
New York March cocoa eased $ 1, or 0.03 percent, to $ 3,362 a tonne after touching a contract high of $ 3,390.
March raw sugar was down 0.12 cents, or 0.8 percent, at 14.92 cents a lb.
The contract climbed to a peak of 15.53 cents on Nov. 3 but then pulled back to a low of 13.93 cents on Nov. 9 before starting to climb again.
“Perhaps the main ‘theme’ for the sugar fundamental bears continues to be the high level of actual stocks (ie. India) vis-a-vis the projected statistical deficit for the coming year’s global balance sheet,” Sucden Financial’s Thomas Kujawa said.
“The bulls’ main point of attack is then, perhaps, the potential for adverse weather to impact a financially constrained industry that in Brazil must compete in the domestic liquid fuels arena.”
White sugar futures were lower, with March down $ 3.20, or 0.8 percent, at $ 400.30 a tonne.
A total of 44,800 tonnes of white sugar were tendered against the December white sugar futures contract that expired on Friday, exchange ICE said on Monday, confirming an earlier Reuters report.
Arabica coffee futures were higher, with March up 1.5 cents, or 1.3 percent, at $ 1.1730 a lb.
January robusta coffee was up $ 23, or 1.5 percent, at $ 1,575 a tonne.
Kash Kamal, senior research analyst with Sucden Financial, said that any breach of $ 1,600 could target a move to $ 1,620 and a close above this level could prompt a testing of recent highs towards $ 1,640.
