SOFTS-Cocoa Climbs Ahead of Grind Data, Sugar and Coffee Also Up

July 18th, 2017

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Category: Cocoa, Sugar

(Reuters) –  Cocoa futures rose on Tuesday, lifted by short covering ahead of closely watched grind data from Asia and North America set to be issued later this week.

Sugar and coffee prices also climbed, buoyed by a weak dollar.

Cocoa

* September London cocoa rose 24 pounds, or 1.59 percent, to 1,531 pounds a tonne by 1132 GMT after peaking at 1,534 pounds, the highest level for the front month since July 6.

* Dealers noted speculators had been scaling back large net short positions in both London and New York cocoa on concerns that heavy rains had curbed the next main crop in Ivory Coast and potentially raised quality issues.

* Second quarter grind data from Asia on Wednesday and North America on Thursday should provide focus this week.

* “I think Asia could see a significant rise but North America has to be a good positive number to make people think there is a change (in demand trends),” one dealer said.

* Some expect a decline in prices over the last 12 months to revive demand.

* Asia’s first quarter grind rose 19.2 percent, year-on-year, but North America’s grind for that period showed a modest 1.15 percent increase.

* September New York cocoa was up $29, or 1.57 percent, at $1,940 a tonne.

Sugar

* October raw sugar was up 0.12 cents, or 0.85 percent, at 14.21 cents per lb.

* Dealers said prices were supported by a weaker dollar, with the U.S. currency falling to a 10-month low against a basket of currencies on Tuesday.

* The market is rangebound, with support anticipated around 13.50 cents per lb but resistance around this month’s high of 14.39 cents.

* “We await fresh news to stir it out of its torpor,” said Sucden Financial senior trader Nick Penney.

* October white sugar was up $2.00, or 0.51 percent, at $396.30 a tonne.

Coffee

* September arabica coffee rose 0.45 cent, or 0.34 percent, to $1.34 per lb, also supported by a soft dollar.

* September robusta coffee was up $3, or 0.14 percent, at $2,129 per tonne.

 

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