London cocoa hits 5-month low on supply surplus, raw sugar gains
- May London cocoa fell 0.5% to 1,590 pounds per tonne at 1305 GMT, having hit its lowest since mid-November at $1,586.
- Ivory Coast's cocoa grind, a measure of demand, stood at 293,000 tonnes by end March versus 282,000 tonnes last season, data from the exporters' association GEPEX showed.
LONDON: London cocoa futures on ICE hit a five-month low on Monday amid bearish technicals and as this week's grind data is expected to reinforce concerns about sluggish demand amid ample supplies.
COCOA
May London cocoa fell 0.5% to 1,590 pounds per tonne at 1305 GMT, having hit its lowest since mid-November at $1,586.
The front month slid to a discount of 24 pounds to July on Friday versus a premium of about 19 pounds on Wednesday.
Dealers said the front month's weakness reflected low demand and rising exchange stocks, with this season's surplus expected to reach between 150,000 and 175,000 tonnes.
Ivory Coast's cocoa grind, a measure of demand, stood at 293,000 tonnes by end March versus 282,000 tonnes last season, data from the exporters' association GEPEX showed.
European first-quarter grind data is expected on Wednesday.
Cocoa arrivals at ports in Ivory Coast reached 1.718 million tonnes by April 11 since the start of the season on Oct. 1, exporters estimated, up 2.8% from last season.
May New York cocoa edged up 0.2% at $2,358 a tonne.
SUGAR
May raw sugar rose 0.7% to 15.57 cents per lb at 1249 GMT, having hit a near three-week high on Friday.
May white sugar, which expires on Thursday, fell 0.3% to $421.20 a tonne.
Dealers said the market was finding solid support after hitting a three-month low of 14.67 cents in late March. They cautioned, however, that weak demand for taking delivery of white sugar at the expiry this week was a bearish signal.
Elsewhere, investors are focussed on the harvest in top producer Brazil.
"Brazil's harvest is getting underway, but not a fast start, with plenty of chatter regarding recent dry weather reducing yields," analysts Green Pool said in a note.
COFFEE
May arabica coffee fell 0.8% to $1.2625 per lb, having hit a two-week high on Friday.
May robusta coffee rose 0.2% to $1,345 a tonne.
March coffee exports in top robusta producer Vietnam were up 38.1% from February at 169,624 tonnes, customs data showed.
Comments
Comments are closed.