Liffe May cocoa ended 33 pounds weaker at 1,942 pounds a tonne on Wednesday after touching a three-week low for the benchmark second month of 1,921 pounds. Traders maintain a close watch on political tensions in Ivory Coast although supplies continue to flow from the world's top grower, keeping prices under pressure. Liffe March white sugar ended $15.10 higher at $775.90 per tonne. Market supported by adverse weather in several key producing countries, including Australia.
Liffe January robusta coffee ended $67 lower at $2,005 per tonne, weighed partly by a stronger dollar. Australia recorded its third-wettest year on record in 2010 due to a major La Nina weather pattern, which is now causing record flooding and set to last another three months.
Cocoa futures fell as talks to end the post-election crisis in top producer Ivory Coast gave hope to a peaceful resolution and as dealers noted that ample supplies were reaching the international market. Cocoa arrivals at ports in top grower Ivory Coast reached 596,167 tonnes by December 31, almost level with 595,290 tonnes in the same period a year ago, according to data from the Coffee and Cocoa Bourse (BCC) obtained by Reuters on Wednesday.
"Looking at the structure of the market, March is not particularly strong against May," said Jonathan Parkman, joint head of agriculture at Marex Financial Limited. Ivory Coast security forces on Wednesday maintained a near total blockade of the hotel where presidential claimant Alassane Ouattara is holed up under UN guard, despite promises by Laurent Gbagbo to ease it.
"After yesterday's apparently more conciliatory tone, the chances of a more peaceful resolution must have increased," Parkman said, referring to the talks. However, the market retained a risk premium as fears persisted that further unrest could make it difficult to export cocoa. "At this stage all outcomes are still possible," Parkman added.
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