Co­coa hits 2-1/2 mth low; sugar slips

The Financial Daily - - MARKET SUMMARY -

LON­DON: Co­coa prices fell to the low­est in over two months on Wed­nes­day as in­vestors eyed in­creased prospects for a res­o­lu­tion to the pro­longed con­flict in Ivory Coast, which could free up ex­ports from the world's top grower.

Ara­bica cof­fee fu­tures were higher as the mar­ket staged a mod­est re­bound fol­low­ing a pro­longed slide while sugar prices fell on prospects for a large crop in top pro­ducer Brazil.

May co­coa on ICE was off $51 or 1.7 per cent at $3,006 a tonne at 1405 GMT af­ter ear­lier hit­ting $2,982, its low­est level since midJan­uary.

July co­coa on Liffe stood 25 pounds lower at 1,969 pounds a tonne af­ter ear­lier slip­ping to 1,957 pounds, also the low­est level for the con­tract since mid-Jan­uary.

Ara­bica cof­fee fu­tures on ICE were higher with the mar­ket fi­nally be­gin­ning to re­bound fol­low­ing a pro­longed slide driven mainly by bear­ish tech­ni­cal in­di­ca­tors.

May ara­bica cof­fee rose 1.75 cent or 0.7 per cent to $2.6320 per lb. The con­tract re­mained, how­ever, about 11 per cent be­low its peak of $2.9665 set on March 9.

May ro­busta cof­fee on Liffe fell $17 or 0.7 per cent to $2,493 a tonne.

Raw sugar fu­tures were lower as the mar­ket's fo­cus re­mained on the har­vest out­look for top pro­ducer Brazil.

"With the loom­ing Brazil­ian crop on the hori­zon it seems safer to sell a rally than buy a dip in­tra­day," Suc­den Fi­nan­cial said in a mar­ket re­port on Wed­nes­day.

May raw sugar fell 1.6 per cent to 26.60 per lb while May whites in Liffe slid $9.50 to $693.00 per tonne. - Reuters

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