LONDON: London cocoa futures were higher on Thursday with the focus on the expiry of the March contract later this week while raw sugar prices also rose.
Cocoa
London cocoa rose 1.2% to 6,566 pounds a metric ton by 1314 GMT.
Dealers said there appeared to be appetite to take delivery against the March contract, which expires on Friday, and its discount to May had narrowed to about 18 pounds from around 78 pounds at the close on Wednesday.
The open interest on the March contract stood at 2,821 lots, equating to 28,210 tons of cocoa.
New York cocoa rose 1.15% to $8,451 a ton.
Dealers noted the New York March contract was also due to expire on Friday with around 10,000 tons changing hands so far during the delivery period.
Raw sugar futures rise, cocoa and coffee prices weaken
Sugar
Raw sugar futures rose 1.1% to 19.06 cents per lb.
Dealers said the market continued to derive support from a diminishing outlook for India’s production and growing sentiment that a one million ton export quota will not be fully met.
Indian mills have contracts to export 600,000 tons of sugar in the 2024/25 marketing year ending in September, but are reluctant to sign further deals as local prices have increased, five industry officials told Reuters earlier this week.
White sugar was 0.8% higher at $537.70 a metric ton.
Coffee
Robusta coffee rose 0.1% to $5,513 a ton.
Dealers said the robusta market was underpinned by the slow current pace of farmer sales in top producer Vietnam.
“Farmers may still have 30% to 40% of their stocks left. They are hoping for higher prices,” one trader based in Vietnam’s coffee belt said.
Arabica coffee fell 0.5% to $3.8470 per lb.
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