New York cocoa futures on ICE surged $100 per tonne to a nearly 1-1/2-year high on Friday, buoyed by the firm British pound against the dollar and speculative buying, while arabica coffee neared a nine-month low. The opening times for raw sugar, arabica coffee and New York cocoa will return to normal on Monday, after the UK shifts to British summer time on the weekend.
May New York cocoa settled up $80, or 3.2 percent, at $2,615 per tonne, after rising more than $100 to $2,636, the highest level for the spot contract since November 2016. The spot contract closed the week up 3.7 percent, the 12th weekly gain in the past 13 weeks, as the market reacted to reduced crop forecasts in West Africa, though a global surplus was still expected.
"The specs are buying and the system (funds) continue to buy. If you're short, you have to be throwing the towel in," one US trader said. May London cocoa settled up 35 pounds, or 2 percent, at 1,821 pounds per tonne, with firmer sterling preventing stronger gains.
Cameroon cocoa bean and product exports fell 9 percent in February from the same period last season, official data from regulator ONCC showed. May arabica coffee settled down 1.8 cents, or 1.5 percent, at $1.172 per lb, after falling to a contract low at $1.165. On the continuation chart it was one tick away from a nine-month low, as market participants focused on expectations for a large Brazilian crop.
Total open interest rose for a ninth straight session to a record 267,006 contracts on Thursday, ICE data showed. May robusta coffee settled down $52, or 3 percent, at $1,690 per tonne.
May raw sugar settled down 0.2 cent, or 1.6 percent, at 12.57 cents per lb. For the week, the spot contract closed down 0.6 percent, its fourth straight week lower. Prices extended losses after data showed production surged in Brazil's center-south region in the first half of March versus the previous two-week period.
"With all this additional sugar around, where are the homes (for it) going to come from?" one dealer said. Brazilian and Thai producers still have to sell a lot of sugar but they are likely waiting for prices to breach 13 cents, dealers said. May white sugar settled up $1.10, or 0.3 percent, at $357.20 per tonne.
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