NY cocoa slips back after hitting 1-1/2 year high

• Recent strengthening in nearby premiums for both New York and London cocoa had created a bullish mood with funds extending long positions in both markets.
• Freezing conditions have curbed sugar production in the United States and Canada while drought has dented Mexico's output.

LONDON: New York cocoa futures hit a 1-1/2 year high on Monday before the recent run-up temporarily stalled, while sugar and coffee prices were slightly lower.

COCOA

March New York cocoa was unchanged at $2,681 a tonne at 1222 GMT after rising to a peak of $2,694, the highest for the benchmark second position since May 2018.

Dealers said a recent strengthening in nearby premiums for both New York and London cocoa had created a bullish mood with funds extending long positions in both markets.

They noted much of the cocoa available in the physical market was trading at substantial premiums to futures and there was tightness in available lower quality supplies.

Speculators increased net long positions in both New York and London cocoa in the week to Nov. 12, according to data issued on Friday.

March London cocoa was 14 pounds, or 0.7%, lower at 1,930 pounds a tonne, weighed down by a strong pound.

Sterling inched higher towards $1.30 Monday on expectations the Conservative Party could win a majority in next month's election and finally push through parliament the Brexit deal agreed with Brussels, paving the way for Britain to leave the EU on Jan. 31.

SUGAR

March raw sugar dipped 0.03 cent, or 0.2%, to 12.70 cents per lb.

Dealers said the market remained locked within its recent range after failing to break out to the upside last week when the March contract peaked at 12.91 cents, its highest level since early October.

March white sugar fell by $1.00, or 0.3%, to $335.70 a tonne.

A total of 43,000 tonnes of Brazilian white sugar has been tendered against the December contract on ICE Futures Europe, exchange data showed on Monday.

"It surprised a little that no Centrals (Central American sugar) were left for this expiry but that may also have to do with the perception that the NAFTA region has tightened significantly," analyst Green Pool said in a note.

Freezing conditions have curbed sugar production in the United States and Canada while drought has dented Mexico's output.

COFFEE

March arabica coffee was down 0.55 cents, or 0.5%, at $1.0910 per lb.

January robusta coffee fell $19, or 1.4%, to $1,379 per tonne.

Louis Dreyfus Company (LDC) on Monday appointed its head of coffee Michael Gelchie as its chief operating officer in the latest management reshuffle at the family-held agricultural commodity group.