LONDON: Cocoa futures rose to 3-1/2 month highs on Thursday as this week’s steep rally gathered further momentum, while arabica coffee prices slumped to a 1-1/2 year low.
COCOA: New York cocoa rose 6.1 percent to USD4,391 a metric ton by 1402 GMT after setting a 3-1/2 month high of USD4,554.
Dealers said the sharp rise in prices this week had been fuelled by fund short covering, led by supportive technical factors as the market is breaking out of a range that it had held for around two months.
Fundamentals appear more supportive, with concerns that production may be curbed by an El Nino weather event, while lower prices compared to peaks set in late 2024 were helping revive demand.
London cocoa gained 5.35 percent to 3,271 pounds a ton after hitting a 3-1/2 month high of 3,414 pounds.
COFFEE: Arabica coffee lost 3.5 percent to USD2.74 per lb after setting a 1-1/2 year low of USD2.7280 with an expected bumper Brazil crop this year alleviate some tightness in supplies.
Robusta coffee fell 1.2 percent to USD3,371 a ton.
Dealers noted exports from Vietnam were running above last year’s pace, and the outlook for the next harvest in the world’s No. 1 robusta producer remained favourable.
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