Liffe cocoa falls

Cocoa futures on Liffe fell on Friday, sharply changing direction from a 3-1/2-year high while the ICE market steadied, after an industry body shifted its 2013/14 global forecast to a surplus from a deficit. Raw sugar futures on ICE Futures US eased on plentiful near-term supplies, while arabica coffee dropped in choppy dealings that hugged the psychological $2-per-lb level amid heavy options dealings at that level.
ICE agricultural markets will be closed on Monday for the US Labour Day holiday. Regular trading will resume on September 2, the exchange said. Cocoa futures initially held their strength but then turned negative after the International Cocoa Organisation (ICCO) said it revised its forecast for the global cocoa balance in the 2013/14 season to a surplus of 40,000 tonnes. It previously anticipated a 75,000-tonne deficit.
Liffe December cocoa futures settled down 17 pounds, or 0.8 percent, at 2,017 pounds, after reaching 2,061 pounds, the highest for the second-position contract since March 2011. The contract dealt in a wide 48-pound range. ICE December cocoa ended up $1, or 0.03 percent, at $3,229 a tonne after rising to $3,281, just below Wednesday's highest level for the second position since May 2011 at $3,300. The second position closed August up 1.4 percent, its eighth straight month higher. The markets had earlier been lifted by investor buying, with the new highs encouraging speculators to take new long positions, dealers said.
In sugar, prices fell quietly for the third straight day, nearing Monday's seven-month low at 15.30 cents. Benchmark ICE October raw sugar futures closed down 0.07 cent, or 0.5 percent, at 15.49 cents. Raw sugar futures closed August down 5.9 percent, its weakest since November, pressured by plentiful nearby supplies and global stocks. Top grower Brazil is at the height of its sugar harvest.
"Futures prices are reflecting a lack of demand for Central American and Thai sugars," said James Kirkup, head of sugar brokerage at ABN Amro in London. October whites on Liffe finished down $2.80, or 0.7 percent, at $423.10 per tonne. In coffee, ICE December arabicas settled up 1.2 cents, or 0.6 percent, at $2.0120 per lb. The second position closed the month up 1.2 percent, its second straight monthly gain. November robusta futures on Liffe closed up $16, or 0.8 percent, at $2,055 a tonne.