Cocoa, sugar and coffee futures consolidated in modest volumes on Friday after Thursdays across-the-board rally, with a stronger dollar and weaker oil prices keeping a lid on upside potential. Cocoa dealers talked of profit-taking after the rally and said the market was well-supported due to a tight supply outlook, although dealers anticipated weak US and European grindings data in the next few weeks.
"There is quite a bit of profit-taking by the specs," one London cocoa dealer said. ICE May cocoa fell $6 to close at $2,585 per tonne, while London July cocoa settled up 3 pounds at 1,877 pounds per tonne in light turnover of 1,887 lots. Cocoa arrivals at ports in top grower Ivory Coast reached 848,984 tonnes by March 15, down from 1,033,544 tonnes in the same period a year ago, according to data from exporters obtained by Reuters on Friday.
ICE May raw sugar was down 0.15 cent to 13.47 cents per lb at 1740 GMT, while London May white sugar finished down 20 cents at $407.80 per tonne in thin volume of 1,306 lots. Coffee futures were little changed on routine two-way chart-driven and rollover business, with the firm dollar and softer oil market capping gains, traders said. Dealers saw key nearby support in London May robustas at $1,550 per tonne.
London May closed down $5 at $1,560 per tonne, while ICE May arabicas were up 0.05 cent at $1.1620 per lb at 1742 GMT. Coffee supplies are likely to be tight with consumption growing despite the economic downturn and production set to fall in 2009/10, International Coffee Organisation Executive Director Nestor Osorio said on Friday.
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