Liffe July cocoa ended 25 pounds lower at 1,889 pounds a tonne on Friday as Ivory Coast presidential claimant Alassane Ouattara called for an end to sanctions against the top grower. Liffe May white sugar falls $8.00 to close at $699.70 a tonne. Dealers said supplies had been boosted by a larger-than-expected crop in Thailand which had helped to ease concern about supply tightness.
Liffe July robusta coffee ended $4 higher at $2,447 a tonne, supported by gains in ICE arabicas and a weakening dollar. In Ivory Coast, Ouattara sought to assert his grip on power after weeks of fighting that has left rival Laurent Gbagbo isolated behind a military cordon in his bunker.
The physical cocoa trade there has been paralysed due to the power struggle following fiercely disputed elections on November 28. Ivory Coast supplies about 40 percent of the world's cocoa. Dealers said as cocoa trade picks up again, the market focus would shift increasingly to fundamentals and favourable weather augured for ample production.
"With the civil unrest coming to an end, all the spec funds are getting out and the pent-up supplies are hitting the market," said Shawn Hackett of Hackett Financial Advisors in Florida.
"This should continue before the market gets back to normal trading behaviour." The International Cocoa Organisation (ICCO) said in its latest monthly market review the political crisis in Ivory Coast continued to make market participants nervous. "Should the dispute be resolved, significant volumes of cocoa will flow from the country after the logistical issues have been addressed," the London-based ICCO said.
Arabica coffee futures on ICE edged higher, on track to confirm Tuesday's key reversal higher with support from the weakening dollar. Chart-based buy signals also helped lift the market after two sharply higher sessions this week gave the market a bullish feel as funds added positions. Dealers focused on news of bookings of Thai sugar for Russia, undercutting traditional supplier Brazil.
Comments
Comments are closed.