More from Infinity
Start Trading Today!
1-888-456-8090
itc@infinitytrading.com
1-888-456-8090
itc@infinitytrading.com
© 2012 Infinity Trading Corp
Cocoa premium soars
May 13th, 2013
Cocoa Futures – The premium cocoa for May delivery commands over the July futures tripled on speculation supplies in Europe will be limited before the May contract expires.
Cocoa for May delivery was 42 pounds ($54.53) a ton more expensive than the July futures by 12:58 p.m. in London on NYSE Liffe, up from 13 pounds on May 10 and compared with a discount on May 8. The May contract ends trading on May 15 and the delivery will be the next day.
“The spread should stay firm until the last trading day on speculation of limited supplies in European warehouses,” Jerome Jourquin, head of agricultural commodity derivatives at Aurel BGC in Paris, said by e-mail today.
Prices for near-dated contracts that are higher than later ones is a market situation known as backwardation and may signal limited supplies. The May contract rose 27 pounds and the July contract was down 1 pound.
Continue reading »
cocoa futures rebound
April 23rd, 2013
Cocoa futures rebounded in London on speculation producing nations in West Africa, the main growing region, have sold a lot of their crops, removing some hedging pressure from futures markets. Coffee and sugar slid.
Producing countries may have sold up to 250,000 metric tons of cocoa in the past 10 to 15 days, according to London-based futures and options brokerage Marex Spectron Group. Prices fell as much as 1.3 percent in London yesterday as money managers boosted bets on higher prices to this year’s high in the week ended April 16, leaving the market vulnerable to liquidation.
“Cocoa collapsed yesterday because speculators bought more -mostly covering shorts- than initially thought,” Eric Sivry, head of agriculture options brokerage at Marex Spectron, said by e-mail today. “With origins having sold a lot recently, selling pressure has been slightly removed.”
Continue reading »
cocoa futures move higher
April 19th, 2013
Cocoa futures, already headed for their biggest monthly gain since August, probably will advance further to the highest since early December, according to a technical analysis by John Caruso at RJO Futures.
Cocoa prices on ICE Futures U.S. in New York are sending bullish signals after surging above the 50-day moving average of $2,149 a metric ton on April 8 and then the 100-day average of $2,246 three days later, Caruso said. Today, after advancing to $2,348, the highest for a most-active contract since Dec. 21, cocoa is above the 200-day moving average of $2,331.
“We need to close above the $2,331 level,” Caruso, a senior broker with Chicago-based RJO, said in a telephone interview. “If we do that, this market could press on toward the $2,450 and $2,550 area before September. If the price fails to close above $2,331, we will probably see a consolidation phase between $2,260 and $2,330 before another push to the upside.”
Continue reading »
April 5th, 2013
Cocoa futures fell for a third day in London on speculation rain is helping boost crop prospects in Ivory Coast, the world’s largest grower. Sugar also declined.
The Daloa region, which accounts for about a third of Ivory Coast production, had three times more rain from March 21-31 than a year earlier, according to the National Meteorological Service. The Standard & Poor’s GSCI gauge of 24 commodities is down 3.3 percent this week, heading for the biggest weekly decline since October.
“There was some concern dry weather would have a negative effect in Ivory Coast so the rain may be easing those concerns,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, by phone today. “Cocoa is getting caught up with selling of many commodities.”
Continue reading »
March 28th, 2013
Cocoa futures climbed for a third day in London and New York, and the gains may be capped as Ghana still has to sell more beans. Robusta coffee fell for a fifth day.
Cocoa has climbed the past three days on buying by speculators because the market is “still considered tight,” Kona Haque, an analyst at Macquarie Group Ltd. in London. Cocoa demand may be equal to or slightly above production this season, she said.
“Every time the market tries to rally we get into Ghana selling,” Haque said by phone today. “Speculators are pushing the market higher.”
Cocoa futures for May delivery climbed 0.6 percent in New York to $2,162 a metric ton by 7:41 a.m. on ICE Futures U.S. Prices are down 3.3 percent in New York this year and up 1.7 percent in London. Beans trade in pounds in London and dollars in New York.
Continue reading »
coffee futures gain
March 20th, 2013
Coffee Futures – Coffee roasters are poised to add more arabica beans to their blends at the expense of robusta as the two varieties’ relative cost narrows to a four-year low.
The gap between futures declined to 35.4 cents yesterday from $1.89 in May 2011. The switch takes several months and probably will start if the spread stays at 35 cents, said Rodrigo Costa, director of trading at Caturra Coffee Corp. in Elmsford, New York. Arabica will average $1.57 in the fourth quarter, 18 percent more than now, as robusta drops 3.6 percent to $2,075 a metric ton (94 cents a pound), the medians of as many as six analyst estimates compiled by Bloomberg show.
Continue reading »
March 12th, 2013
Cocoa futures climbed to a three- week high on signs of reduced deliveries by farmers in Ivory Coast, the world’s biggest producer. Orange juice and cotton also gained, while coffee slid. Sugar was unchanged.
Purchases of cocoa beans by the Ivory Coast government fell 7.5 percent in the first three months of the season that began in October, according to a document sent to Bloomberg by an official in the ministries of finance and agriculture. Deliveries to ports from farms slid to 649,249 metric tons, compared with 702,127 tons a year earlier, the data show.
“This should allow prices to work higher as there will be less cocoa on the market,” Sterling Smith, a futures specialist at Citigroup Global Markets Inc. in Chicago, said in an e-mail. Supplies in the Ivory Coast are getting tighter, and some beans have poor quality, Smith said.
Continue reading »
March 8th, 2013
Sugar futures climbed to a four-month high in London on speculation millers in Brazil, the world’s leading producer, will make more ethanol at the expense of the sweetener just as port congestion threatens to delay exports. Cocoa rose.
Sugar output in Brazil’s center south, the main growing region, may be little changed from last year even as the cane crop rises because producers are set to make more ethanol, according to Deutsche Bank AG. As many as 199 ships were waiting at Brazil’s main ports to load corn and soybeans, up from 190 a week earlier, data from SA Commodities and Unimar Agenciamentos Maritimos Ltda. showed. More loading of grains could delay shipments of the sweetener when the harvest starts in April.
Continue reading »
January 31, 2013
Sugar output is poised to drop for the first time since 2009 as farmers from Mexico to India cut plantings after the biggest two-year price slump since 1999.
Global output will decline to 165 million metric tons in the 2013-14 marketing year that will start in October in most countries, according to DZ Bank AG, Germany’s largest cooperative lender. Production will be a record 172.3 million tons in 2012-13 after three straight expansions, the U.S. Department of Agriculture estimates. Raw sugar in New York will rise 9.6 percent to average 20.5 cents in the fourth quarter, the mean of nine bank estimates compiled by Bloomberg shows.
Continue reading »
January 3rd, 2013
Coffee futures arabica climbed in New York to the highest level in more than three weeks as investors bought the futures on speculation prices may have bottomed. Sugar retreated.
The beans traded on ICE futures U.S. gained 3.9 percent yesterday after a vote in the House of Representatives broke a year-long impasse over how to avert $600 billion in tax increases and spending cuts that threatened to send the economy back into recession. Speculators are now closing out bets on lower prices after arabica fell the most in 12 years and was the worst performing commodity in the Standard & Poor’s index of 24 raw materials last year, according to Citigroup Inc.
Continue reading »