London robusta coffee futures ended mostly lower on Friday although nearby premiums continued to climb on concern about a supply squeeze, dealers said. White sugar ended slightly higher but the market remained rangebound while cocoa finished little changed.
Dealers said the coffee market's overall weakness reflected the prospect of weekend showers in Brazil. Rains are needed to aid flowering of next year's crop. "We are waiting to see what the rain situation will be in Brazil this weekend," one dealer said, adding that prices could open either sharply higher or lower on Monday depending on how much rain had fallen. November finished $27 higher at $2,150 a tonne while January ended $3 lower at $1,778 a tonne.
Dealers said the front month continued to be supported by short covering with the open position at 65,164 lots remaining far in excess of certified stocks which were last reported at 17,520 lots. "As we approach the delivery period the shorts are becoming more nervous and we are having more short covering," one dealer said.
London cocoa futures finished little changed with the market looking to consolidate after sliding to a one-month low earlier this week. March ended flat at 966 pounds a tonne. The contract slipped to a one-month low for the second month of 941 pounds early this week. Dealers said hedge selling may pick-up soon, exerting downward pressure on prices, with many expecting a large West African crop despite concern about black pod disease.
Cocoa arrivals figures in Ivory Coast are running about double last year although earlier this week exporters said black pod disease could cut output this year by between 75,000 and 100,000 tonnes.
Volume was boosted by rolling forward of positions out of December into March. White sugar futures finished higher on trade and speculative short covering in thin volume with the market lacking any clear overall trend.
December ended $2.40 higher at $275.60 a tonne. Dealers said the market continued to drift well within this month's range of $268.40 to $282.90 a tonne, basis December. The market has been underpinned by increased fund buying interest recently linked to strength in the overall commodities sector, particularly crude oil.
Comments
Comments are closed.