NEW YORK/LONDON: London cocoa futures on ICE hit their highest in 1-1/2 months on Tuesday after data showed demand has improved, while raw sugar hit a two-week trough.
September London cocoa hit its highest since late May during the session at 1,663 pounds per tonne, although it slipped near the close to end down 0.3% at 1,645 pounds per tonne.
Europe’s second-quarter cocoa grind, a measure of demand, rose 13.6% from a year earlier to 356,854 tonnes, the European Cocoa Association said.
Germany’s second-quarter 2021 cocoa grind rose 18% on the year to 93,064 tonnes, the German confectionery industry association BDSI said.
The ending of lockdowns and reopening of retail and restaurants, plus the resumption of some events, has helped confectionery demand.
Supplies remain ample however, following large crops in top growers Ivory Coast and Ghana this season.
September New York cocoa settled down $31, or 1.3%, at $2,399 a tonne.
October raw sugar closed up 0.09 cent, or 0.5%, at 17.08 cents per lb?, its first gain in the last six sessions. The contract, however, hit a two-week low earlier in the day.
Dealers said the market remained under pressure as short-term demand is low and funds are liquidating long positions.
India’s monsoon has splashed back into life after a lull, covering the entire country.
Top producer Brazil’s centre-south sugar production reached a stronger-than-expected 2.89 million tonnes in the second half of June, data showed.
August white sugar rose $2.20, or 0.5%, to $423.90 a tonne.
September arabica coffee settled down 1.75 cents, or 1.1%, at $1.5225 per lb.
Political turmoil in top producer Brazil is pressuring the real currency and weighing on arabica - tempting dealers to sell dollar-priced coffee by raising returns in local currency terms. The market has support below $1.50, however, dealers said, as roasters are tempted to buy at those levels. They added that with roasters’ buying not complete, risk-reward favours the upside for arabica.
September robusta coffee slid $27, or 1.5%, to $1,717 a tonne.