SOFTS-Cocoa Prices Turn Lower as Ivory Coast Mutiny Ends

May 16th, 2017

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Category: Cocoa

cocoa fruit 450x299(Reuters) – Cocoa futures turned sharply lower on Tuesday as the leaders of a nationwide military mutiny in top producer Ivory Coast accepted a government deal and ended their revolt.

COCOA

* July London cocoa was down 32 pounds, or 2.0 percent, at 1,558 pounds a tonne at 1215 GMT after dipping to a low of 1,540 pounds on news that the uprising in Ivory Coast appeared to have ended.

* The market lost much of the ground gained on Friday and Monday when the mutiny led to the temporary closure of Ivory Coast’s main port Abidjan.

* Dealers said the pact with soldiers would allow this season’s strong flow of supplies out of Ivory Coast to resume.

* “They seem to have reached an agreement with the soldiers. Probably the worst is over,” Commerzbank analyst Michaela Kuhl said, adding port arrivals remained well above last year’s levels and a global surplus was widely expected this season.

* A total of 47,970 tonnes of cocoa has been tendered against the ICE May London cocoa contract that expired on Monday, exchange data showed on Tuesday.

* July New York cocoa was down $45, or 2.2 percent, at $1,996 a tonne.

SUGAR

* July raw sugar rose 0.22 cents, or 1.4 percent, to 15.83 cents per lb.

* Dealers said the market had derived spillover support from the strength of crude oil prices and a test of resistance around 16 cents per lb was possible in the near future.

* They noted a breach of that level may prompt funds and other speculators to cover a net short position.

* Weather in Centre-South Brazil remained a key focus with recent rains slowing the pace of crushing.

* “Weather forecasts predict heavy rain until the weekend but dry weather for next week, which seems to be construed as neutral market-wise,” said Tom Kujawa, co-ahead of the softs department at Sucden Financial.

* India’s monsoon rains are expected to arrive on the southern Kerala coast on May 30, two days ahead of schedule, a weather office source said on Tuesday.

* August white sugar was up $5.90, or 1.3 percent, at $445.00 a tonne.

COFFEE

* Prices were little changed with July robusta down a marginal $1, or 0.05 percent, at $1,968 a tonne.

* July arabica coffee was up 0.30 cent, or 0.2 percent, at $1.3375 per lb.

 

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