London cocoa prices fall as May's discount widens

LONDON: London cocoa futures were lower on Friday, with front month May particularly weak as next week's quarterly grind data was expected to reinforce concerns about sluggish demand.

COCOA

May London cocoa was down by 39 pounds, or 2.4%, to 1,602 pounds a tonne at 1342 GMT.

The front month slid to a discount of 24 pounds to July versus a discount of about 10 pounds on Thursday and a premium of around 19 pounds on Wednesday.

Dealers said the front month's weakness reflected low demand and rising exchange stocks.

Valid certified stocks, as of April 8, stood at 97,730 tonnes, up from 55,400 tonnes at the end of 2020.

First quarter grinding data to be issued next week should provide further evidence that the COVID-19 pandemic is curbing consumption of cocoa beans.

Europe's first-quarter grind is expected to be issued on Wednesday, while North American data is due next Friday.

May New York cocoa fell by $24, or 1.0%, to $2,331 a tonne.

SUGAR

May raw sugar rose by 0.45 cents, or 3.0%, to 15.63 cents per lb.

Dealers said the market was continuing to regain ground after finding solid support around a three-month low of 14.67 cents set in late March.

The market's focus has been on the start of the harvest in top producer Brazil, with production in the centre-south region expected to fall this season.

Diminished prospects for production in the European Union have also provided support.

May white sugar rose by $4.10, or 1.0%, to $428.80 a tonne, with weak demand curbing interest in taking delivery when the contract expires next week.

COFFEE

May arabica coffee rose by 0.3 cents, or 0.2%, to $1.2815 per lb.

May robusta coffee fell by $4, or 0.3%, to $1,341 a tonne.