Liffe July cocoa ends 38 pounds weaker at 1,874 pounds a tonne after earlier hitting 1,857 pounds, the lowest price for the benchmark second month since December 2010. Market weighed by resumption of Ivory Coast exports and widespread losses in commodity markets. Liffe August white sugar closes $7.70 higher at $602.10 a tonne. Market supported partly by signs of a pick-up in physical demand after recent weakness in prices.
Liffe July robusta coffee ended $3 lower at $2,511 a tonne. Roaster demand helping to underpin prices. Earlier in the day cocoa fell, swept up in another bout of selling on commodity markets, while raw sugar edged up holding above costs of production and arabicas firmed while remaining below a recent 34-year high.
Oil fell for a second day on Thursday, while silver was set for its worst two-week slide in nearly 25 years, after a rising dollar and concern about slowing demand for raw materials pummelled the commodity complex. "Everyone's wondering if the commodity bubble has burst," said a London-based broker, adding this was leading investors to reduce their exposure to commodity markets and softs were no exception.
Cocoa futures were lower, in line with weaker commodities, as the resumption of top producer Ivory Coast's cocoa exports weighed on prices. Ivory Coast will export around 150,000 tonnes of beans in May and June, Gerry Manley, head of cocoa at Olam International Ltd, told Reuters. Liffe July cocoa was down 31 pounds or 1.6 percent to 1,881 pounds per tonne. Sugar futures also eased, pressured by expectations that the global sugar balance could swing into surplus.
Liffe August white sugar was up 40 cents or 0.07 percent to $594.80 per tonne in slim volume of 2,101 lots. Pierre Sebag of consultancy Sugar K Ltd said he saw immediate support at 20.50 cents a lb, above the eight-month trough of 20.40 cents touched on May 6. Coffee markets firmed, but were under pressure from the stronger dollar and risk averse sentiment. Liffe July robustas were down $4 at $2,510 a tonne.