LONDON: Cocoa futures on ICE rose in thin volumes on Friday as fund activity continued to dominate the market, while raw sugar prices eased as ample supplies remained in focus.
COCOA
July New York cocoa was up $19, or 0.7 percent, at $2,821 a tonne by 1447 GMT, reversing course after falling to $2,729.
On Thursday, prices rallied to $2,943, their highest since September 2016, before turning lower on profit-taking.
Sentiment improved on Friday when the market held above technical support levels, although dealers said volumes were thin.
Market participants were awaiting fresh government data, due later on Friday, for further signs of speculative activity.
One dealer estimated that speculators had added 10,000 lots to their net long position in New York cocoa.
“They’ve just been buying the momentum,” the dealer said. “They’ll be very close to their record gross long.”
July London cocoa was up 14 pounds, or 0.8 percent, at 1,889 pounds a tonne.
New York’s rare premium over London weakened, after recently surging to a new record.
SUGAR
May raw sugar, which expires on Monday, was down 0.07 cent, or 0.6 percent, at 10.90 cents per lb.
Prices fell to their lowest since September 2015 this week, although profit-taking lent some support on Thursday.
However, ample global supplies and a broadly bearish outlook remained in focus, capping the recovery, dealers said.
The weakening in the May/July spread also dampened sentiment, dealers said.
“(It is) suggesting we will have a large delivery and some corners of the market are suggesting there may well be some lower-quality ‘less desirables’ in the tape,” Tom Kujawa of Sucden Financial said in a market update.
August white sugar fell $1.80, or 0.6 percent, to $317.90 a tonne, having this week hit its lowest since December 2008.
Sugar output in China’s Guangxi region rose 14 percent in the 2017/18 season, an industry website said on Friday. Guangxi accounts for about two thirds of China’s cane acreage.
Sugar merchant Alvean said it had signed a long-term raw sugar sales contract with Dubai’s Al Khaleej Sugar, owner and operator of the world’s largest sugar refinery.
COFFEE
July arabica coffee was up 0.60 cent, or 0.5 percent, at $1.2025 per lb.
July robusta coffee slipped $4, or 0.2 percent, to $1,767 a tonne.
Source: Brecorder
