New York cocoa futures on ICE steadied on Tuesday, having hit a 1-1/2 year high in the previous session on nearby supply tightness, while raw sugar prices remained range bound. March New York cocoa was up $5, or 0.2%, at $2,669 a tonne by 1452 GMT after hitting $2,694 on Monday, its highest since May 2018.
Premiums for December cocoa over March in both New York and London have receded slightly, though they remain near record levels, indicating tight nearby supply. In the physical markets much of the available cocoa is trading at substantial premiums to futures, with some perceived tightness in lower-quality cocoa as well.
A dealer said that low-quality cocoa is thought to be held in strong hands while few will deliver better-quality beans to the exchange because they command such steep premiums in the physical market. March London cocoa was up 4 pounds, or 0.2%, at 1,933 pounds a tonne, having touched its highest in a year and a half last week.
March raw sugar fell 0.08 cents, or 0.6%, to 12.68 cents per lb. The market remains locked in its recent range after failing to break to the upside last week when the March contract hit 12.91 cents, its highest since early October.
March white sugar fell $2.90, or 0.9%, to $337.40 a tonne. March arabica coffee dipped 0.20 cents, or 0.2%, to $1.0905 per lb. January robusta coffee fell $22, or 1.6%, to $1,350 a tonne.