LONDON: London cocoa futures on ICE fell on Wednesday as a firmer British pound and speculative selling weighed, while raw sugar rose in step with more upbeat energy markets.
COCOA
March London cocoa was down 22 pounds, or 1.6 percent, at 1,357 pounds a tonne by 1459 GMT, after hitting a session low of 1,347 pounds.
Prices were partly weighed down by a firmer British pound, dealers said.
This extended losses from Friday, the market's last trading session before the holiday break, when the March position set a contract low of 1,376 pounds.
Dealers said prices were under pressure on Wednesday as funds remained bearish, while a widening in the arbitrage between London and New York had inspired selling.
"The funds have a significant short position in the market but that's not to say they can't add more," one dealer said. "I think are in for a little bit of a long haul, it's difficult to turn them over."
Focus also remained on ample global supplies amid good weather in top grower Ivory Coast.
"With suspicions of good supplies and good arrivals coming through, there doesn't appear to be a tonic out there to lift up the market - unless these funds come out of the woodwork," the dealer said.
March New York cocoa was up $1, or 0.05 percent, at $1,857 a tonne.
Prices rallied over three percent in the previous session, as traders covered short positions.
Weekly government data on Friday showed speculators increased their short positions in New York cocoa to a two-month high in the week to Dec. 19.
SUGAR
March raw sugar was up 0.20 cent, or 1.4 percent, at 14.90 cents per lb, after hitting 14.94 cents, its highest since Dec. 5.
Prices were boosted by more upbeat energy markets, which strengthened the technical structure and inspired chart-based speculative buying, dealers said.
Currencies also lent support, as the dollar slipped and the Brazilian real firmed.
March white sugar rose $5.90, or 1.5 percent, to $391.40 a tonne after hitting $392.00, its highest since Dec. 1.
COFFEE
March arabica coffee rose 0.70 cent, or 0.6 percent, to $1.2530 per lb.
March robusta coffee fell $5, or 0.3 percent, to $1,707 a tonne.
Vietnam's coffee exports for 2017 are estimated to have fallen 20.1 percent from the previous year, the government said on Wednesday.
Comments
Comments are closed for this article.