LONDON: London cocoa futures tumbled on Monday to a 2-1/2 month low as currency pressure and favourable crop weather in top grower Ivory Coast weighed, while white sugar fell as technicals weakened.
COCOA
March London cocoa was down 22 pounds, or 1.5 percent, at 1,467 pounds a tonne by 1449 GMT. It had earlier hit 1,465 pounds, its weakest since Sept. 12.
Prices were partly pressured by a stronger British pound, which touched a one-month high on Monday.
March New York cocoa was down $33, or 1.6 percent, at $2,008 a tonne after touching its lowest since Oct. 2.
New York prices were also pressured by currency as the dollar snapped a three-day losing streak after the US Senate approved a tax overhaul over the weekend.
Dealers said the fundamentals focus remained on crop-friendly weather and signs of strong production in top grower Ivory Coast.
"There is an improved forecast for the main crop in West Africa," one dealer said. "The good weather is providing all the elements for good crop development."
Ivory Coast cocoa arrivals since the start of the season on Oct. 1 reached about 510,000 tonnes by Dec. 3, exporters estimated on Monday, compared with 565,000 tonnes in the same period last season.
Renewed speculative short selling and long liquidation was also putting pressure on the market, dealers said.
SUGAR
March white sugar was down $3, or 0.8 percent, at$385.90 a tonne.
Dealers said technical signals turned bearish after prices were unable to hold above the 10-day moving average and slipped below the key $390 support level.
Harvesting in Thailand is under way and production is expected to increase.
"Mostly fine weather is forecast for Thailand, conducive to the start of harvesting," analyst Green Pool said in a weekly note.
March raw sugar was unchanged at 14.98 cents per lb.
Dealers said the technical structure was weakened after prices failed to follow through on gains made early last week, leading to a disappointing close on Friday.
COFFEE
March arabica coffee rose 0.4 cents, or 0.3 percent, to $1.2995 per lb.
January robusta coffee fell by $7 or 0.4 percent, to $1,746 a tonne.
Indonesia exported 13,347.6 tonnes of coffee beans in November from main coffee-growing area Lampung province, down 57 percent from the same month last year, data showed on Monday.
Comments
Comments are closed.