LONDON: New York cocoa futures rose on Monday to a 15-month high, helped by speculative buying amid expectations for a smaller crop from top grower Ivory Coast, while raw sugar also edged up.
COCOA
May New York cocoa was up $25, or 1.1 percent, at $2,338 a tonne at 1207 GMT, after hitting $2,348 a tonne, the highest for the second position since December 2016.
Prices were supported by further speculative buying after gains on Friday, dealers said, although they noted volumes were thin and the market was technically oversold.
Speculators raised their net long position in cocoa to a 1-1/2-year high in the week to Feb. 27, exchange data showed.
Sentiment was also boosted by signs that top grower Ivory Coast is on course to produce less cocoa that previously expected.
“There are some supply concerns out there revolving around perceived dryness,” said one dealer. “Physical differentials are very high, so there’s obviously a scramble for cocoa.”
About 20,000 tonnes of beans were delivered to Ivory Coast ports between Feb. 26 and March 4, down from 40,000 tonnes during the same week last season.
May London cocoa was up 21 pounds, or 1.3 percent, at 1,662 pounds a tonne, after climbing to 1,665 pounds, its highest in 3-1/2 months.
SUGAR
May raw sugar was up 0.12 cents, or 0.9 percent, at 13.55 cents per lb.
Prices tumbled on Friday as the speculative short-covering rally that had lifted the market off a 6-1/2-month low ran out of steam.
Prices recovered some of those losses on Monday, with dealers pointing to light short-covering following the slump.
Exchange data also showed speculators boosted their bearish position in sugar to a four-week high in the week to Feb. 27.
However, dealers said the gains were fragile and the market remained vulnerable to selling, as producers were still under-hedged.
Focus also turned back to India as strong output boosted expectations for a larger-than-expected crop and weaker domestic prices as a result, dealers said.
“That could cause the government to take action quickly,” Marex Spectron said in a report. “And the only action which would really stabilize the domestic market would be exports.”
May white sugar rose $2.60, or 0.7 percent, to $365.80 a tonne.
COFFEE
May robusta coffee fell $3, or 0.2 percent, to $1,748 a tonne.
May arabica coffee was down 0.70 cent, or 0.6 percent, at $1.2150 per lb.
Source: Brecorder.com
