Cocoa recovers further from 20-month low; sugar falls

LONDON: London cocoa edged further away from this week's 20-month lows on Friday amid lingering worries that potential political upheaval in top producer Ivory Coast could pose risks to production.

Sugar prices slipped.

COCOA

September London cocoa rose 19 pounds, or 1.2%, to 1,582 pounds per tonne by 1114 GMT, having hit a low of 1,545 on Wednesday.

Dealers cited worries over political risk in Ivory Coast after premier and ruling party candidate for the October presidential election, Amadou Gon Coulibaly, 61, died on Wednesday.

The upcoming election is widely seen as a test of stability for the world's top cocoa producer.

Political risk aside, cocoa prices remain under pressure from improved prospects for next season's crop coupled with flailing demand for impulse purchases like chocolate.

September New York cocoa rose $11, or 0.5%, to $2,160 a tonne.

SUGAR

October raw sugar fell 0.05 cents, or 0.4%, to 11.79 cents per lb, having hit a 1-1/2 week low of 11.75 amid deteriorating macro-economic signals.

World stocks and oil prices faltered as record-setting new coronavirus cases in several US states led to worries that more lockdowns may be necessary.

Falling oil prices encourage cane mills in Brazil to ramp up sugar output at the expense of cane-based ethanol.

Brazilian mills cumulative sugar output this season is 48.75% above last season.

"A (Brazil) production change (i.e. (a) sugar mix decrease) is unlikely as sugar prices still best ethanol," said trader Czarnikow.

August white sugar fell $2.10, or 0.7%, to $337.80 a tonne.

COFFEE

September arabica coffee rose 0.1 cents, or 0.1%, to 98.85 cents per lb.

The Brazilian real extended its recovery, discouraging exporters from selling dollar-priced coffee by lowering their returns in local currency terms.

September robusta coffee rose $5, or 0.4%, to $1,202 a tonne.