LONDON: Cocoa futures on ICE fell on Thursday after hitting 11-month highs in the previous session on news that top producers Ivory Coast and Ghana had agreed a minimum price for their beans. Sugar prices, meanwhile, rose to a 1-1/2 month high.
COCOA
September New York cocoa fell $36, or 1.4pc, to $2,505 a tonne by 1047 GMT after climbing to its highest in nearly a year on Wednesday on improved technical signals and the news from Ivory Coast and Ghana.
Ghana and Ivory Coast, which account for nearly two thirds of global cocoa production, set a minimum price of $2,600 a tonne and suspended forward sales for the 2020-21 season.
Rabbobank analyst Carolos Mera said the move was significant for cocoa but added that there was some concern that no plan was announced to deal with excess supply, which often accompanies a move to set floor prices.
September London cocoa fell 27 pounds, or 1.5pc, to 1,838 pounds a tonne after rising on Wednesday to its highest since July 2018.
SUGAR
July raw sugar edged up by 0.02 cents, or 0.2pc, to 12.64 cents per lb after peaking at 12.65 cents, its highest since April 25.
Sugar production in India, the world's second-biggest producer, could fall as much as 15pc in 2019/20 from the previous year as severe drought hits a key growing region.
Sugar is also being driven by the recent climb in corn prices, which could increase the use of cane to make ethanol rather than sugar.
Oil prices jumped on Thursday after a suspected attack on two tankers in the Gulf of Oman near Iran.
Stronger oil prices can lift prices for ethanol, tempting cane mills to produce more of the fuel and less sugar.
"The market looks set to continue to improve. However, stocks remain high and demand tepid. Additionally, Brazilian ethanol parity is around 13.00 - 13.30 cents. (Selling) is likely if prices push up another 50 points," one dealer said.
August white sugar rose $1.80, or 0.5pc, to $335.50 a tonne.
COFFEE
September arabica coffee fell 0.5 cents, or 0.5pc, to 101.00 cents per lb, having touched a two-week low on Wednesday.
The 2019 coffee harvest at farms associated with Brazil's Cooxupé, the world's largest coffee cooperative, reached 26.65pc of the planted area by June 7, way ahead of the pace set in previous years.
September robusta coffee fell $5, or 0.4pc, to $1,424 a tonne, having touched a two-week low on Wednesday.
Vietnam's domestic robusta coffee prices rose on Thursday by about 2.1pc from a week earlier, largely attributable to exchange rate fluctuations that prompted some farmers to refrain from selling.
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