LONDON: Arabica coffee futures on ICE hit a fresh 13-year low on Friday as persistent fund selling showed no sign of abating, while London cocoa touched a nine month peak.
COFFEE
* May arabica coffee was down 0.45 cents, or 0.5 percent, at 89.80 cents per lb at 1511 GMT, after slumping to a new 13-year low of 89.35 cents.
* A dealer said any recovery in coffee was bound to be short-lived. "They (funds) are in the driving seat, they can roll their short and make money every roll."
* Massive Brazilian exports of both arabica and robusta beans continue to weigh on prices. Brazilian coffee exports last month were 14.2 percent higher than in March 2018.
* Terra Forte, one of the largest Brazilian coffee exporters, has filed for bankruptcy protection in a Sao Paulo state court, lawyers for the company said on Wednesday.
* May robusta coffee was down $9, or 0.7 percent, at $1,383 a tonne.
* Exports from top robusta producer Vietnam have also been strong.
COCOA
* May London cocoa rose 17 pounds, or 0.9 percent, to 1,826 pounds a tonne, having hit a nine month peak of $1,828.
* The market's recent run-up has been fuelled by speculative short covering amid concerns about dry weather in some regions of top grower Ivory Coast.
* However, latest data indicates Ivorian port arrivals so far this season have been strong.
* May New York cocoa was up $45, or 1.9 percent, at $2,433 a tonne, having hit a nine-month high of $2,454 on Thursday.
SUGAR
* May raw sugar rose 0.07 cents, or 0.6 percent, to 12.73 cents per lb.
* The market continued to face heavy producer selling above 12.80 cents.
* "The wall at 12.80-13 cents seems insurmountable but we in the 'watch' are aware that it can fall under the weight of any macro or weather-inspired short covering by the funds," said Sucden Financial senior trader Nick Penny in a note.
* May white sugar was up $3.6, or 1.1 percent, at $326.60 a tonne.
* The contract expires on Monday and there has so far been little appetite to take delivery.
Comments
Comments are closed for this article.