LONDON: Cocoa futures on the ICE exchange hovered near two-year lows on Monday, with dealers remaining concerned over the size of surplus stocks in West Africa because of reduced global demand.
COCOA
London cocoa dropped 1.1percent to 2,880 pounds a ton by 1359 GMT, not far from Friday’s more than two-year low of 2,728 pounds. Ivory Coast cocoa processors are refusing to buy beans produced during the coming mid-crop, saying the cost is too high and demanding tax relief, three government sources told Reuters.
COFFEE
Arabica coffee rose 0.6percent to USD3.3450 per lb after matching Friday’s 5-1/2 month low of USD3.3100.
SUGAR
Raw sugar lost 0.4percent to 14.21 cents per lb after hitting a 2-1/2 month low of 14.13 cents. Broker StoneX said there is near-term pressure in the market owing to the higher than usual need for mills in top grower Brazil to sell sugar for March delivery. The broker on Friday forecast a global sugar surplus of 2.86 million tons for the 2026/27 season.
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