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  • May 13th, 2017
  • Comments Off on Cocoa climbs on speculative buying, Ivorian unrest
New York cocoa futures hit a five-week high on Friday on short-covering, with unrest in top grower Ivory Coast adding support. July New York cocoa was up $58, or 2.97 percent, at $2,010 a tonne by 1345 GMT, after climbing to $2,014, the highest for the second position since April 7. July London cocoa rose 37 pounds, or 2.42 percent, to 1,567 pounds a tonne, after hitting its highest since April 13.

Dealers said speculative buying had picked up after prices climbed above key resistance levels, triggering technical buy stops. Low volumes, however, exaggerated the gains.

Fresh unrest in top grower Ivory Coast also lent support, as the country's national security council held an emergency meeting after soldiers fired their weapons and staged a revolt over a bonus payment dispute.

"We've all been looking for a short-covering turnaround," a dealer said. "And I'm sure headlines of gunfire in the Ivory Coast are kickstarting a market that was always poised for a short-covering buying spree at some point."

A strike by dockers in Cameroon's main port in Douala blocked the export of about 3,025 tonnes of cocoa and 12 tonnes of coffee on Friday. Cameroon is the fifth-largest producer of cocoa.

July raw sugar rose a marginal 0.01 cent, or 0.06 percent, to 15.64 cents per lb, after climbing to a session high of 15.84 cents.

Dealers said technicals were supportive but the market's inability to break out of the recent range had stifled appetite to test upward potential.

"The market is trying to push higher. However, sentiment remains uncertain and we could consolidate in today's session," said Geordie Wilkes, analyst at Sucden Financial.

August white sugar was down $1.50, or 0.34 percent, at $446.10 a tonne.

Five major chocolate and candy companies announced a joint commitment on Thursday to reduce calories in many sweets sold on the US market.

July robusta coffee rose $14, or 0.71 percent, to$1,998 a tonne, while July arabica coffee gained 0.85 cent, or 0.63 percent, to $1.351 per lb.

Both markets fell in the previous session on chart-based selling.

Colombia is expected to produce at least 15 million 60kg sacks of coffee next year, against 14.7 million this year, Finance Minister Mauricio Cardenas said.



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