Liffe sugar rises

Liffe March white sugar ended $6.00 higher at $826.40 per tonne on Wednesday, having previously reached a contract high of $835.80, supported by tight global supplies due to adverse weather in key producing countries. Liffe May cocoa ended 21 pounds higher at 2,063 pounds a tonne, underpinned by concerns over risks to supplies from top producer Ivory Coast due to a power struggle between rival governments.
Liffe January robusta coffee ended $27 higher at $2,024 per tonne, tracking gains made in recent sessions on New York's arabica market while London was closed. In the sugar market, dealers said investment funds were pushing futures up in a bid to square books in 2010 with high valuations. They noted cash demand was scarce at high prices.
Adverse weather in key producers such as Brazil and Australia contributed to a tight global supply outlook. "Fund managers want sugar steady for the end of the year. They've had a pretty torrid time after the sell-off earlier in the year," a senior sugar futures broker said.
Nick Penney, a broker with Sucden Financial, said, "The sugar markets continue to be firm despite the odd setback. He added, "It is still possible that there may be liquidation and book-squaring toward the end of the week, but we believe the early part of 2011 will see new highs in (whites and raws) markets."
Cocoa futures fell in holiday-thinned trade after the latest bean arrivals figures from Ivory Coast showed that steady supplies were reaching the international market. "The market has more or less settled down. It is slightly on the back foot, with some liquidation and some overhead hedging, but there does not seem to be major support in this sort of area," said a cocoa dealer in London.
A ship insurance agent based in Abidjan told Reuters on Wednesday, "The situation in the port remains calm. Ships are able to dock, unload and discharge freely. No time restriction is in force since the curfew ended on December 21." The agent said there were no known disruptions to cocoa shipments.
Cocoa arrivals at ports in top grower Ivory Coast reached 535,250 tonnes by December 26. since the start of the season in October, down from 565,122 tonnes in the same period a year ago, according to data from the Bourse du Cafe et Cacao (BCC) obtained by Reuters on Wednesday.