London cocoa heads back towards two-month high

LONDON: London cocoa rose on Thursday, heading back towards Tuesday's two-month highs amid tight nearby supplies, though volumes were thin with US markets closed for the Thanksgiving holiday.

COCOA

March London cocoa ended up 36 pounds, or 2%, at 1,860 pounds per tonne.

Cocoa has benefited from falling exchange stocks after chocolate maker Hershey swooped on ICE exchange beans.

Top producers Ivory Coast and Ghana are meanwhile holding out for higher prices amid a standoff with industry players who are limiting purchases amid weak demand and after the west African nations introduced a cocoa price premium.

The Ivorian cocoa regulator has alleged US chocolate maker Hershey's move to buy cheap beans from the ICE exchange is an attempt to derail its plans to increase farmers' income through the premium.

Dealers said cocoa has probably not yet seen its highs.

March New York cocoa settled down $61, or 2.2%, at $2,724 a tonne on Wednesday after rising on Tuesday to a nine-month high of $2,821.

SUGAR

March white sugar ended up $3.40, or 0.9%, at $404.10 a tonne, with volumes thin due to the US holiday.

March raw sugar fell 0.27 cents, or 1.8%, to settle at 14.77 cents per lb on Wednesday as the market awaited news from India about potential export subsidies for the 2020/21 season.

"The market has now erased the mid-November jump in prices and the March premium. (It) seems to have accepted that India, among others, can fill the 'hole' in early 2021 raws supply," said Commonwealth Bank of Australia in a note.

COFFEE

March robusta coffee ended up $35, or 2.5%, at $1,411 a tonne.

Top robusta producer Vietnam's domestic coffee prices edged slightly lower on Thursday from a week earlier as supplies built up from the ongoing harvest.

March arabica coffee settled up 1.25 cents, or 1.1%, at $1.1715 per lb on Wednesday.

Dealers said dry weather in top producer Brazil remained a supportive factor, denting next year's crop outlook.