Cocoa eases

Cocoa futures eased slightly on Friday in a modest pullback from a four-year peak set earlier this week, although prices remained underpinned by concerns that lower West African production could lead to a large global deficit in the upcoming 2015/16 season. December London cocoa was down 1 pound, or 0.05 percent, at 2,215 pounds a tonne at 1330 GMT.
Prices have fallen slightly after climbing to a peak of 2,242 pounds on Wednesday, the highest level for the second position in more than four years. Dealers said the setback may have been driven by some profit-taking by speculators after the market's recent strong advance but prices remained underpinned by concerns about the outlook for 2015/16 crops in West Africa. "You are going to get a smaller crop in Ivory Coast and if Ghana has the same issues you are going to be looking at quite a large deficit (for 2015/16)," one London dealer said.
Ghana, the world's No 2 producer, saw a sharp and unexpected decline in production in 2014/15 and the market is keeping a close watch on whether problems recur next season. Dealers noted a decline in the second-quarter North American grind was in line with expectations, which ranged from around 5 to 10 percent lower. Cocoa processors in North America reported grinding 120,359 tonnes of beans in the second quarter, down 8.6 percent from the same period in 2014.
Capital Economics said the latest European and North American cocoa grinding data pointed to subdued demand. "Combined with a rebound in Ghanaian production, we think that the price of cocoa will fall this year," it said in a report. September New York cocoa was down $10, or 0.3 percent, at $3,342 a tonne. Sugar futures fell as traders digested news of a larger-than-expected 268,000 tonnes delivered to trade house ED&F Man against Thursday's August white sugar expiry.
A huge overhang of Thai sugar, some of which is being delivered against the expiry, is struggling to find a home as a global supply glut persists. October raws were down 0.27 percent or 2.2 percent at 12.00 cents a lb, while October whites eased $3.10 or 0.9 percent to $358.40 a tonne. Robusta coffee futures were lower although the July contract continued to command a large premium, fuelled by short-term tightness in tenderable supplies. September robustas were down $32 or 1.9 percent at $1,673 a tonne, while September arabicas eased 0.90 cent or 0.7 percent to $1.2795 per lb.