LONDON: Cocoa prices on ICE steadied on Thursday following losses in the previous session, with investor attention turning to low exchange stockpiles, partially caused by a dispute between industry and top producers Ivory Coast and Ghana. March New York cocoa dipped $8, or 0.3%, to $2,643 a tonne by 1749 GMT, having hit its lowest in nearly two weeks in the previous session.
Dealers noted it makes no economic sense to bring in fresh beans to grade on the exchange at the moment, meaning the market could be skewed to the upside as falling stocks would be a buy signal to the funds.
Ivory Coast and Ghana have banned all cocoa sustainability schemes that Hershey runs in their countries, accusing the chocolate maker of trying to avoid paying them a cocoa premium by sourcing unusually large volumes of beans from the exchange.
Cocoa farmers in Ivory Coast said on Thursday they would withdraw from chocolate industry sustainability programs if companies try to avoid paying a premium aimed at combating farmer poverty.
March London cocoa rose 6 pounds, or 0.3%, to 1,786 pounds per tonne. March raw sugar rose 0.05 cent, or 0.3%, to 14.65 cents per pound, having hit a three-week low in the prior session. The dollar index hit its lowest in more than two years, making dollar-priced commodities like sugar and coffee cheaper for non-US investors. Dealers said sugar is consolidating within range, though recent upside momentum has been lost. Egypt has extended an import ban on white and raw sugar for three months.
March white sugar rose $1.2, or 0.3%, to $402.50 a tonne. March arabica coffee fell 0.4 cents, or 0.3%, to $1.1975 per lb. March robusta coffee edged up $1, or 0.1%, to $1,372 a tonne. Domestic coffee prices in Vietnam, the world's top robusta producer, narrowed this week on rising supplies as the 2020-21 harvest picked up pace.
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