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Markets

London cocoa falls in volatile trade amid ample supply

Published Updated

COCOA

* May London cocoa was down 17 pounds, or 1 percent, at 1,649 pounds per tonne at 1514 GMT.

* Sterling reversed course on Tuesday, falling after Britain's attorney general poured cold water on the apparent breakthrough in Brexit negotiations between the European Union and Britain.

* A weaker British currency makes London-traded cocoa cheaper for holders of other currencies.

* A dealer said London cocoa was at the mercy of sterling in the short term, though participants were ultimately reluctant to bid up the chocolate ingredient due to adequate supply.

* Further out, he saw potential price gains given concerns over the Ivory Coast's mid-crop following below-average rainfall.

* Indonesia's trade office in Lampung, Sumatra, has revised up its 2018 monthly cocoa bean exports from the province to more than double 2017's exports.

* May New York cocoa fell $28, or 1.3 percent, to $2,174 per tonne.

SUGAR

* May raw sugar rose 0.06 cent, or 0.5 percent, to 12.35 cents per lb. The front month dipped to a two-month low of 12.08 cents on Thursday.

* A dealer said the fact that speculators were probably net short of around 90,000 lots was a supporting factor, but better than expected sugar output in India and Thailand was negative.

* As such the market remains range-bound, he said, driven in the short term by macro economic factors like oil prices and currency movements.

* Oil prices firmed on curbs to exports from Saudi Arabia and Venezuela.

* Stronger oil prices tend to support sugar prices by encouraging cane mills to produce more ethanol rather than sugar.

* May white sugar rose $1, or 0.3 percent, to $341.60 per tonne.

COFFEE

* May arabica coffee fell 0.05 cent, or 0.05 percent, to 97.15 cents per lb.

* Prices remain pressured by plentiful global supplies, especially from top grower Brazil.

* Indonesia's Lampung trade office has revised up its 2018 data for monthly coffee beans exports from the province.

* New York May coffee may test a support at $0.9650 per lb, a break below which could cause a fall to $0.9585, according to Reuters technical analyst Wang Tao.

* May robusta coffee fell $3, or 0.2 percent, to $1,529 per tonne.

Copyright Reuters, 2019