LONDON: Cocoa prices on ICE steadied on Wednesday after hitting their highest in a week on upbeat guidance from Swiss chocolate maker Barry Callebaut.

COCOA

March London cocoa was up 0.6% at 1,735 pounds a tonne by 1604 GMT, having touched a 1,769 pound peak.

March New York cocoa fell 0.5% to $2,533 a tonne after hitting a high of $2,597.

Barry Callebaut said it was seeing a gradual recovery and confirmed its mid-term guidance for average sales volume growth of 5-7% a year for this and the next two fiscal years.

Its sales volumes fell 4.3% in the company’s first quarter to Nov. 30 as COVID-19 reduced impulse purchases, out-of-home consumption and gift giving.

The cocoa market remains under pressure from surplus supplies, with large volumes of unsold beans piling up in top producer Ivory Coast. Concerns about demand are receding, however, as signs of recovery emerge.

March raw sugar fell 0.3% to 15.68 cents per lb.

Dealers said sugar maintains an upside bias as funds remain keen on commodities, but it is unlikely to test mid-January’s 3-1/2 year highs anytime soon, with rains in Brazil boosting cane growth and continued exports from India.

Indonesian state company Bulog has issued an international tender to purchase and import 53,000 tonnes of raw sugar, European traders said.

March white sugar fell 0.5% to $441.80 a tonne.

March arabica coffee rose 0.2% to $1.2470 per lb.

Arabica is benefitting from the recent recovery in Brazil’s real currency and from concerns about a poor 2021/22 crop in Brazil.

Starbucks Corp on Tuesday reported a bigger than expected fall in quarterly comparable sales as the rising number of coronavirus cases in the United States kept customers at home.

March robusta coffee fell 0.4% to $1,320 a tonne.