LONDON: London cocoa futures on ICE fell to a seven-week low on Wednesday, weighed partly by a stronger pound, as the market waited to see if third-quarter grinding data would provide further evidence of weakening demand.
December London cocoa was down 9 pounds, or 0.6%, at 1,634 pounds by 1425 GMT after slipping to a seven-week low of 1,628 pounds.
Dealers said that third-quarter grind data would provide a short-term focus as the market looks for indications on the extent to which the Covid-19 pandemic has dented demand.
European and North American third-quarter grind data is due to be issued on Thursday.
Ivory Coast rains have also improved the outlook for crops in the world’s top producer.
December New York cocoa was up $2, or 0.1%, at $2,383 a tonne.
March raw sugar was down 0.02 cents, or 0.1%, at 13.99 cents per lb.
Dealers said the market was consolidating just below a 7-1/2 month peak set on Monday, with the prospect of rains in Brazil over the next couple of weeks helping to stall the recent run-up, temporarily at least.
“The weather forecasts are still giving rise to optimism and suggest that the coming weeks will bring the urgently needed rainfall,” Commerzbank said in a note.
December white sugar fell by $3.40, or 0.9%, to $383.70 a tonne.
December arabica coffee rose by a marginal 0.05 cents, or 0.05%, to $1.1015 per lb. Dealers continued to keep a close watch on conditions in Brazil and the extent to which rains will bring relief to crops.
Coffee traders are struggling to ship cargos out of Brazilian ports because of a shortage of available containers or space in vessels to hold them, traders and analysts said. November robusta coffee rose by $22, or 1.8%, to $1,245 a tonne.—Reuters
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