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