Liffe October white sugar futures ended $17.00 higher at $549.60 per tonne on Thursday. Market supported by concern over damage to Pakistan's crop from flooding. Liffe December cocoa ended 21 pounds higher at 2,050 pounds a tonne. Market supported partly by the weakness of sterling against the dollar but upside seen limited with crop prospects in West Africa generally favourable.
Liffe November robusta coffee settled $32 higher at $1,766 per tonne. Prices dragged higher by surge in ICE arabicas but failed to match gains in the US market. Dealers focused on damage to Pakistani sugar crops from floods, and said India could be an origin of sugar for Pakistan after higher cane plantings.
"India will be a featured supplier to Pakistan in the year ahead," said James Kirkup, director and head of sugar brokerage at ABN Amro Markets (UK) Ltd. Pakistan's output of refined sugar could fall by 500,000 tonnes because of damage to the crop from floods, a farmer association said on Thursday. "We've seen profit-taking and industry price fixation in the mid months," a London-based cocoa dealer said.
Early signs show the world's largest cocoa producing region, West Africa, could produce a record 2010/11 main crop, following several years of disappointing output, Gerry Manley, managing director of cocoa at Olam International, said on Thursday. A London dealer said he saw no immediate market impact of the interview, although he noted the message was bearish. West Africa's production outlook has improved in recent weeks. Dealers said concerns about a long-term decline in top producer Ivory Coast remained a key issue for the market.
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