Liffe front-month December white sugar ended $10.60 higher at $711.70 per tonne on Thursday, the highest level for the front month since February. Market supported by tight supplies and a weaker dollar. Liffe second-month March cocoa ended 8 pounds lower at 1,926 pounds a tonne. Market weighed by a surprising drop in Europe's third-quarter cocoa grind.
Liffe second-month January robusta coffee ended $3 higher at $1,682 per tonne underpinned by the soft dollar. Europe's third-quarter cocoa grind, a measure of demand, fell 4 percent on the year to 331,182 tonnes, the Brussels-based European Cocoa Association said on Thursday.
Analysts and dealers had been expecting a small rise in grindings although they anticipated that the restocking period was over. Dealers said the fall in European third-quarter grindings was linked to weak demand for cocoa butter, one of the most expensive chocolate ingredients. "I assume I'm not the only one surprised by the grind, for sure it's due to butter," a London-based broker said.
The grim outlook for the global economy is expected to cap any cocoa demand growth. "The global economy is still not strong enough to sustain a stronger grindings recovery, and any growth will likely take place in Asia and producer countries," Macquarie bank said in a report. "We remain concerned about weak cocoa butter ratios and the high costs that continue to hit processors' margins."
Comments
Comments are closed.