London cocoa futures hit a fresh 3-1/2 year peak on Friday before running into profit-taking and closing slightly lower, dealers said. "I think we went too fast, too soon," one dealer said, adding the market had become overbought following its recent advance, which was triggered partly by fears over damage to upcoming West African mid crops from dry weather.
Benchmark July ended down two pounds at 1,051 pounds a tonne after setting a contract high of 1,058 pounds, the highest level for the second month since September 2003. London cocoa futures have surged 28 percent since December 2006 amid growing concern over tightness in global supplies and rising industrial demand.
COFFEE HIGHER: London robusta coffee futures were higher on Friday, boosted by fund and speculative buying which helped to absorb origin selling, dealers said. Benchmark May was up $13 at $1,555 a tonne at 1350 GMT after trading in a range of 1,562 to $1,545. Total volume was an above average 9,118 lots.
SUGAR MIXED: London sugar futures settled mixed in light volumes on Friday, with attention focused on spreads and the overall mood bearish, dealers said. May closed down $0.20 at $345.00 per tonne after trading in a narrow band of $346.00 to $344.60.
Dealers referred to active spread trades ahead of the May expiry on April 13, and possible arbitrage at a whites-over-raws premium between the London and New York May contracts of around $120.