Robusta coffee ends off $20 at $1,386 a tonne in London on Friday, weighed by broad-based losses in commodity markets linked to a strengthening dollar. March cocoa in London ends 14 pounds lower at 2,168 pounds a tonne. End of the month profit-taking contributes to the market's decline. December white sugar in London ends $3.90 higher at $580.50 per tonne.
Market underpinned by prospect of further Indian imports. Traders also talked of Indian buying of Brazilian raw sugar cargoes at a discount to spot New York futures, which bears interpreted as signalling adequate availability of Q4 supplies. Raw sugar futures have doubled this year, due to the combined impact of India's shift to become a net importer of sugar after a poor local crop, and concerns over the impact of excessive rains on cane yields in top producer Brazil.
Cocoa dealers also talked of position squaring before the end of the month, adding that the upturn of the dollar could add to selling pressure later in the session. "Technically, both charts (New York and London) suggest that profit taking is taking place at the end of the month," said Ricardo Santos, head of the agri-commodities brokerage at BNP Paribas Fortis. Cocoa dealers took stock of the latest bean arrivals data from top supplier Ivory Coast, noting that they were sharply up on last year.
Cocoa arrivals at ports in Ivory Coast hit 121,155 tonnes between the start of the season on October 1 and October 25, reflecting new shipments and a revision of the previous tally, according to official figures. Cocoa dealers talked of concerns over the weak demand outlook, although the latest upbeat US wealth data was a welcome signal for consumption. Traders remained focused on the arrival of the new crop in top robusta producer Vietnam, with the near-term supply outlook looking ample.
Comments
Comments are closed.