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  • Oct 28th, 2005
  • Comments Off on London cocoa market dips on West African hedging
London cocoa prices flagged on Thursday under light pressure from West African hedging but unease about potential political agitation in Ivory Coast stemmed losses, traders said. The market was warily eyeing Ivory Coast, fearing unrest at the weekend when President Laurent Gbagbo's mandate ends, dealers said.

Liffe's most active December contract concluded six pounds lower at 837 pounds a tonne after moving 1,916 lots from a total of 3,548. The contract traded between 844 and 830.

Cocoa arrivals at ports in Ivory Coast are picking up at the start of the 2005/06 season as farmers who stockpiled beans hoping prices would improve started to sell before the quality of their stocks fell.

SUGAR DOWN: London white sugar futures closed lower on heavy hedge selling after a larger-than-expected EU sugar export tender award on Thursday, traders said.

Front-month December clawed back after dropping 2.5 percent to a session low of $289.10 per tonne to end down 30 cents at $296.20 per tonne in volume of 5,764 lots, after trading from $297.10 to $289.10.

March ended down 40 cents at $304.70 per tonne in volume of 3,680 lots, having moved from $305.00 to $298.50.

Earlier, the European Union sold 164,000 tonnes of white sugar at a maximum rebate of 40.109 euros per 100 kg at Thursday's tender, EU data said.

COFFEE FLAT: Robusta coffee in London steadied on Thursday in a session dominated by trade Against Actuals and contract rolling, dealers said.

Liffe's second-month January closed $1.00 higher at $964 a tonne after a range of $971-960 on turnover of 11,830 lots. Spot November finished down $1.00 at $943 on volume of 11,801 lots between $950 and $940. Total turnover was 25,947.

Copyright Reuters, 2005


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