ICE cocoa rises on lower Ivorian arrivals, sugar steady

ICE cocoa futures rose on Monday, supported by data showing lower weekly bean arrivals at West African ports, while sugar steadied, underpinned by wet weather slowing down cane harvesting in Brazil. Arabica coffee futures fell sharply on technically driven selling, pressured by a stronger dollar near 8-1/2-month highs against a global basket of currencies.
Robusta coffee futures edged down, with dealers focused on early harvest progress in top grower Vietnam. London March cocoa rose 19 pounds, or 0.8 percent, to 2,292 pounds a tonne at 1502 GMT, within sight of a 4-1/2 year peak at 2,317 pounds reached on November 20. ICE New York March cocoa futures were up $44, or 1.3 percent, at $3,354 per tonne.
"The bean arrivals data gave the market a bit of a tonic this morning," a London-based cocoa futures broker said. "The stronger dollar boosted arbitrage between the London and New York markets - selling New York and buying London," the broker added. Exporters said around 43,000 tonnes of beans were delivered to Ivory Coast's two ports of Abidjan and San Pedro between November 23 and November 29, down from 66,000 tonnes during the same period last year.
Raw sugar futures steadied, underpinned by rainfall slowing down the cane crush in centre-south Brazil. Expectations of raw sugar exports from number 2 producer India capped the market, traders said. "The market is rangebound, between 14.50-15.50 cents a pound," said Michael Liddiard, a consultant with Agrilion. ICE March raw sugar futures were down 0.1 cent, or 0.7 percent, at 14.87 cents a lb, drifting further from a 10-month high of 15.78 cents touched on November 24, supported by a shift in the global market into deficit after years of surpluses.
ICE March white sugar futures were flat at $404.60 per tonne. ICE March arabica coffee futures fell 4.7 cents, or 3.8 percent, to $1.1890 per pound, pressured by the firmer dollar. Kash Kamal, senior research analyst with Sucden Financial, said he expected support at $1.17 per pound to hold firm for now. "Additional selling pressure could then target $1.11 on increased volumes after which futures may target firmer levels towards $1.10 and below," Kamal said. January robusta coffee futures were little changed, down $8, or 0.5 percent, at $1,506 per tonne, not far from the two-year low of $1,494 reached on November 18.