cocoa futures news

cocoa futures news

January 6th, 2017

Cocoa futures prices rose on Friday as disgruntled soldiers seized control of the second largest city in the world’s top grower Ivory Coast, prompting a wave of short covering, though the New York market turned lower along with the weak British pound.

Sugar and coffee futures eased.

March London cocoa settled up 12 pounds, or 0.7 percent, at 1,821 pounds per tonne, after surging 2.2 percent to a two-week high at 1,848 pounds following the reports from Ivory Coast.

Unrest in Ivory Coast appeared to be spreading with reports that gunfire had erupted in the western cocoa growing region of Daloa, hours after soldiers demanding salary increases seized the second largest city, Bouake.

“The first story was in a town (Bouake) which isn’t in the cocoa areas but then there was a report it had spread to Daloa,” one London dealer said.

“You have got a lot of money in cocoa which doesn’t trade it too often and seeing those sort of headlines, they are not going to mess about and we’ve seen short covering.”

Dollar strength against the British pound after the release of U.S. jobs data pressured prices in New York with March cocoa closing down $1, or 0.04 percent, at $2,261 per tonne.

Raw sugar prices were lower with March ending down 0.03 cent, or 0.1 percent, at 20.75 cents per lb.

Dealers said the market was weighed by a bout of profit-taking after a strong post-Christmas rally linked partly to a diminished crop outlook in top consumer India.

“We have had a strong correction in the last week or so … fueled perhaps by the prospect of a shock to the market consensus from India … and perhaps the slowdown in fund activity which ‘exaggerated’ the recent down trend to the low in mid-December,” said Tom Kujawa, co-heard of Softs Department for Sucden Financial Research, adding prices will likely start to drift lower.

The possibility that production in China could rise this season also helped to stall the run-up.

March white sugar settled down $3.10, or 0.6 percent, at $543.40 per tonne.

Coffee prices were slightly lower, weighed partly by a stronger dollar, though spot arabica futures closed the week up 4.2 percent, their strongest performance since late October.

March arabica settled down 0.9 cent, or 0.6 percent, at $1.4285 per lb.

March robusta settled down $14, or 0.7 percent, at $2,140 per tonne. (Editing by David Evans and Chizu Nomiyama)

- Daily