New York Cocoa soars, sugar lower

02 Feb, 2011

Arabica coffee futures reversed course and settled lower on Monday after soaring to a 13-1/2 year peak, while US cocoa made its biggest monthly gains in nearly 1-1/2 years due to an ongoing export ban in top grower Ivory Coast.
Robusta coffee remained firm after touching its highest level in 2-1/4 years and raw sugar futures recouped their earlier losses to finish slightly higher after slumping on investor selling that set off technical stops. ICE March arabica futures eased 0.20 cent to finish at $2.4480 per lb, after hitting $2.5075, the highest level for the spot contract since June 1997.
ICE benchmark March cocoa futures rose $75, or 2.3 percent, to settle at $3,352 per tonne, edging towards their one-year top of $3,420 a tonne after retreating on Friday. The spot contract closed the month up 10.4 percent. Raw sugar futures on ICE tumbled as much as 4 percent after investor selling from near 30-year highs triggered automatic sell stops below 33 cents a lb. ICE March raw sugar inched up 0.03 cent to close at 33.97 cents per lb, rebounding 1.38 cents from the session low at 32.59 cents, as global supply tightness continued to underpin the market.

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