Cocoa declines

Cocoa futures trickled down to close at roughly three-year lows on Friday, while the upsurge in the US dollar pressured arabica coffee down more than 4 percent. Sugar futures also fell, although strength in the US crude oil market, prevented them from making deeper losses.
The euro accelerated losses against the dollar, trading below $1.34, as the market continued to unwind long positions in the single currency ahead of key events next week. All of the softs reversed earlier gains, which were made when investors focused on hope that a European summit next week would deliver concrete measures to address the debt crisis. "Fundamentally we have enough cocoa. I think we're seeing good origin selling. In the cash market, I've seen a number of things, like people offering discounts," said Sterling Smith, analyst with Country Hedging in Minnesota.
March cocoa on ICE settled down $59, or 2.6 percent, at $2,228 a tonne, the second position's weakest close since March 2009. London March cocoa finished down 25 pounds, or 1.7 percent, at 1,435 pounds per tonne, its weakest close since November 2008. Cocoa exports from Indonesia's main growing island of Sulawesi almost doubled in November, the first monthly increase since June, as the mid-crop progressed, but shipments still fell by more than 40 percent from the same month last year.
Arabica coffee tumbled but still remained in the range its held for more than a month, between $2.24- $2.54 per lb, feeling strong pressure from the dollar, which reverse higher. March arabica coffee on ICE dropped 6.15 cents, or 2.6 percent, to finish at $2.2955 per lb, its biggest one-day drop since October 31. Earlier, it dropped 4.3 percent to $2.2550.
ICE certified arabica stocks surged 15.5 percent in November, recent exchange data showed, in their biggest monthly jump since 2003 after a flood of beans were delivered to board. London robusta coffee futures also succumbed to pressure with one dealer noting pressure from the new harvest in top producer Vietnam. March robusta coffee on Liffe settled down $38, or 1.9 percent, at $1,989 a tonne.
Britain's Financial Services Authority (FSA) has met with London-based exchange NYSE Liffe NYX.N to discuss coffee delivery delays which have infuriated trade houses and roasters trying to get supplies out of warehouses in Antwerp. ICE raw sugar futures were down a shade, with some pressure from new of a record French beet crop, dealers said. "We seem destined to continue to trade sideways and we expect stops above 24 cents and below 22.71 cents," said Thomas Kujawa of brokerage Sucden Financial.
Benchmark raw sugar March futures fell 0.14 cent to settle at 23.45 cents a lb. The front month fell to 22.71 cents last week, the lowest level since June. Smith said energy prices were firmer which was supporting the sugar market. March white sugar futures on Liffe dropped $3.60 to close at $613.60 per tonne. The contract slid to $594.00 on Tuesday, the lowest level for the front month since May.