New York cocoa falls to near four-year low on ICCO stocks data

New York cocoa futures fell to their lowest in almost four years on Friday as a bearish stocks estimate issued by the International Cocoa Organisation heightened concerns about excess supplies. March New York cocoa was down $39 or 1.8 percent at $2,093 a tonne at 1216 GMT after dipping to a low of $2,082, the weakest for the front month since March 2013.
World cocoa stocks in 2015-16 were higher than expected and point to a smaller deficit than forecast, an annual survey conducted by the International Cocoa Organisation (ICCO) Expert Working Group on Stocks showed on Thursday. "I think the ICCO data had an impact," one London dealer said, adding stocks look set to rise substantially in the current 2016/17 season.
"People's projections of surpluses (for this season) seem to be growing daily," the trader added, noting the strong pace of port arrivals in top grower Ivory Coast. "I think the next few months are going to see prices dwindle further." March London cocoa was down 22 pounds or 1.3 percent at 1,698 pounds a tonne. Cocoa buyers in top grower Ivory Coast are violating a government guaranteed minimum price for farmers as a build-up of bean stocks in warehouses and ports drives down demand, farmers and co-operative managers told Reuters.
Raw sugar futures edged higher but remained rangebound. March raws were up 0.13 cents or 0.6 percent at 20.49 cents a lb with solid support around 20 cents and stiff resistance around 21 cents. The market had tested the lower end of the range late last week, twice rebounding from a low of 20.05 cents, then failed at the upper end of the band this week, climbing to a peak of 20.99 cents on Tuesday before the advance stalled.
"Prompt sugar continues to trade in a directionless range," said analyst Tobin Gorey of Commonwealth Bank of Australia. March whites was up $2.60 or 0.5 percent at $539.90 per tonne. Robusta coffee futures edged higher with a halt to trading in top grower Vietnam during the Tet holiday helping to curb hedge selling. March robusta coffee was up $14 or 0.6 percent at $2,224 a tonne. March arabica coffee was down a marginal 0.10 cents or 0.1 percent at $1.5135 per lb.