Cocoa hits one week high after upbeat guidance from Barry Callebaut

LONDON: Cocoa prices on ICE hit their highest in a week on Wednesday after upbeat guidance from Swiss chocolate maker Barry Callebaut, while sugar and coffee also rose.

COCOA

March London cocoa was up 1.6% to 1,753 pounds per tonne at 1119 GMT, having hit a high of 1,769 pounds.

March New York cocoa rose 1.5% to $2,582 a tonne, having hit a high of $2,597.

Barry Callebaut said it was seeing a gradual recovery and confirmed its mid-term guidance for average sales volume growth of 5-7% per year for the current and the next two fiscal years.

Its sales volumes fell 4.3% in the company's first quarter to Nov. 30 as COVID-19 reduced impulse purchases, out-of-home consumption and gift giving.

The cocoa market remains under pressure from surplus supplies, with large volumes of unsold beans piling up in top producer Ivory Coast. Concerns about demand are receding, however, as signs of recovery emerge.

SUGAR

March raw sugar rose 1.6% to 16 cents per lb.

Dealers said sugar maintains an upside bias as funds remain keen on commodities, but it is unlikely to test mid-January's 3-1/2 year highs anytime soon, with rains in Brazil boosting cane growth and continued exports from India.

Indonesian state company Bulog has issued an international tender to purchase and import 53,000 tonnes of raw sugar, European traders said.

March white sugar rose 1% to $448.80 a tonne.

COFFEE

March arabica coffee rose 0.4% to $1.2505 per lb.

Arabica is benefitting from the recent recovery in Brazil's real currency and from concerns about a poor upcoming 2021/22 crop in Brazil.

March robusta coffee was flat at $1,325 a tonne.