London cocoa futures set a fresh 3-1/2-year high on Wednesday and dealers saw no direct market impact from news of a deal to name a rebel leader as prime minister of top cocoa grower Ivory Coast. July settled up 16 pounds to 1,062 pounds in volume of 2,829 lots, after moving between 1,043 and 1,067.
Last Friday, July hit 1,058 pounds, at the time its highest in 3-1/2 years. Dealers said news that Ivory Coast's government had agreed to name rebel leader Guillaume Soro as prime minister under a plan to reunite the country, had not weighed on the market.
"I can't see it affecting cocoa at all," said one dealer. Another said, "It's had little or no effect." A third dealer said, "The political news is an underlying factor. When there was unrest in the past (in Ivory Coast), the cocoa eventually came out. Unrest can cause a bullish reaction, but a political deal need not be bearish." Dealers talked of light trade buying as well as AAs (Against Actuals - a form of hedging) and some spread activity.
COFFEE FUTURES RISE: London robusta coffee futures settled slightly higher in light volume on Wednesday after speculative buying and producer selling, dealers said.
May finished up $6 at $1,561 per tonne, in the middle of the day's range of $1,551 to $1,570. Total volume across contracts was 10,673 lots. "The market is up but unchanged. There's been a push on spec buying that took back all of yesterday's losses. It's been languishing in a very narrow range all day," a dealer said. Dealers said the London market was seeking direction, and relatively high volumes of switch sales for July deliveries spoke to that uncertainty.
SUGAR ENDS HIGHER: London white sugar futures settled slightly firmer on light speculative buying on Wednesday, underpinned by political tension over Iran, dealers said.
May finished up 10 cents to $341.60 per tonne in volume of 4,139 lots, after trading from $339.60 to $344.00. August closed up $1.60 to $325.80 per tonne in volume of 2,834 lots, having moved from $323.20 to $327.20.
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