Liffe May cocoa ends up 50 pounds at 2,396 pounds a tonne on Thursday, having earlier touched a 7-month high of 2,406 pounds. Market is supported by worries over supply due to violence in Ivory Coast as the world's top grower moves closer to civil war.
Liffe May robusta coffee ends up $19 at $2,382 a tonne. Market supported by strength in arabicas market, which is underpinned by a shortage of Colombian beans. Liffe May white sugar falls $3.00 to close at $757.50 a tonne. Expectations of an ample centre/south Brazilian sugar harvest are a main focus of the market.
"It's (cocoa) up on fighting and chaos in Ivory Coast," said Sean McGillivray, vice president and head of asset allocation for Great Pacific Wealth Management in Grants Pass, Oregon. Despite forecasts for a surplus of cocoa beans in the market, sentiment in both New York and London is being dominated by the bitter conflict in Ivory Coast. "The premium in price is telling you there's a shortage ... tenderable stock levels have come off a bit. There's been a general drawdown of stocks," a London-based broker said.
Dealers said the combination of an export ban, sanctions against the country and a crippled banking system have virtually stopped the flow of cocoa out of Ivory Coast in recent weeks. "We continue to expect higher prices in the sugar market and are targeting 31.50 cents a lb, basis May New York, and firstly $785.00, then $800.00, basis May London," said Nick Penney of broker Sucden Financial.
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