NY cocoa slips as charts sour; robusta coffee at 2-month low

Shoaib Ur Rehman December 5, 2018

LONDON: New York cocoa futures on ICE slipped on Wednesday, as weaker technical signals spurred light selling, while robusta coffee set a fresh two-month low amid expectations for ample supplies from top grower Vietnam.

COCOA

* March New York cocoa was down $13, or 0.6 percent, at $2,174 a tonne by 1153 GMT, after falling to a session low of $2,163 a tonne.

* Dealers said that chart signals had soured after the market was unable to climb above key resistance levels, triggering speculative selling in light volume.

* “Prices need to take out the 100 DMA (day moving average) in order to improve upside momentum,” Geordie Wilkes, technical analyst at Sucden Financial, said in a market update.

* Market participants were also closely monitoring supplies from top grower Ivory Coast, where the main crop is off to a strong start.

* March London cocoa was down 9 pounds, or 0.6 percent, at 1,602 pounds a tonne.

COFFEE

* March robusta coffee was up $4, or 0.3 percent, at $1,585 a tonne, after earlier falling to $1,575 a tonne, the lowest for the second position since early October.

* Dealers noted the structure had weakened after prices failed to gain a foothold above $1,600 in the prior session, but buying appetite at lower levels was providing some support.

* Focus remained on ample global supplies as the harvest in top grower Vietnam gathers pace, although recent weather conditions could cause some delays to early shipments, traders said.

* March arabica coffee was up 0.15 cents, or 0.14 percent, at $1.0705 per lb, edging away from a two-month low of $1.06 set in the prior session.

* Ivory Coast exported 56,723 tonnes of coffee beans in the first ten months of 2018, up about 53.3 percent from the same period last year, provisional port data showed on Wednesday.

SUGAR

* March raw sugar was up 0.01 cents, or 0.1 percent, at 12.76 cents per lb.

* March white sugar rose $0.50, or 0.15 percent, to $344.80 a tonne.

* French cooperative Tereos is holding extraordinary elections to its membership council this week which the farmer-owned group hopes will end an internal feud at the debt-laden group already struggling with an industry-wide slump.

Copyright Reuters, 2018
 

 

 

 

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