Home »Agriculture and Allied » World » Cocoa hits 2-1/2-week high on unrest in Ivory Coast

  • News Desk
  • Jul 21st, 2017
  • Comments Off on Cocoa hits 2-1/2-week high on unrest in Ivory Coast
Cocoa futures on ICE rose to 2-1/2-week highs on Thursday, boosted by unrest in top grower Ivory Coast, while the London market found additional support from a weaker pound. Raw sugar and arabica coffee were slightly lower.

September London cocoa settled up 15 pounds, or 1 percent, at 1,548 pounds per tonne after hitting 1,559 pounds, its highest since July 3. Dealers said prices were supported by unrest in top producer Ivory Coast, where gunmen attacked an elite security unit base and stole stocks of weapons.

"It could take days for the military to react and take back over the situation," said Peter Mooses, senior market strategist at RJO Futures in Chicago. London prices were also lifted by a weaker pound on concerns British ministers are prepared to walk away from Brexit talks without a deal.

The market awaited second-quarter North American grind data, set for release at 4 pm EDT (2000 GMT) Thursday, with seven traders estimating a range of 1 percent lower to 3 percent higher. Most were around 2 percent higher. December New York cocoa settled up $12, or 0.62 percent, at $1,956 per tonne after reaching 1,973, its highest since July 3.

October raw sugar settled down 0.09 cent, or 0.62 percent, at 14.41 cents per lb after reaching 14.63, its highest since June 1. Prices extended losses after falling back below the 50-day moving average. One trader said the market was underpinned by possible frost damage in top-grower Brazil.

"Until the market gets a transparent update on the potential scale of the cane damage, we will probably fall back into the recent range in the near to medium term," Sucden Financial senior trader Nick Penney said. October white sugar settled down $3.10, or 0.80 percent, at $395.50 per tonne.

September robusta coffee settled up $3, or 0.1 percent, at $2,113 per tonne. Steady rains in the Central Highlands, Vietnam's main coffee growing region, are providing enough water for the upcoming crop, with harvest season expected to start in late November or early December, traders said. September arabica coffee settled down 0.8 cent, or 0.6 percent, at $1.35 per lb.

Copyright Reuters, 2017


the author

Top
Close
Close