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Adds comments, weekly price moves
NEW YORK/LONDON, Feb 17 (Reuters) – Arabica coffee and cocoa futures on ICE gained 6% in the week amid concerns about supplies, with London cocoa hitting the highest price in six years on Friday as potential defaults loom in Ivory Coast, the world’s top producer.
Advisory: CFTC’s Commitments of Traders reports continue to be on hold.
COCOA
* May London cocoa LCCc2 settled up 9 pounds, or 0.4%, at 2,121 pounds per tonne after peaking at 2,155 pounds – the highest level since November 2016.
* Dealers said the prospect of a supply deficit in the current 2022/23 season (October/September) had heightened concern over tight supplies.
* Ivory Coast’s Cocoa and Coffee Council (CCC) regulator on Thursday said that some domestic exporters risked defaulting on cocoa export contracts as they struggle to source beans from the main harvest ending in March.
* In other news, Brazilian cocoa farmers are asking the local government to stop the flow of imported cocoa from Ivory Coast.
* May New York cocoa CCc2 rose $24, or 0.9%, to $2,771 a tonne, gaining 6% in the week.
COFFEE
* May arabica coffee KCc2 settled up 5.5 cents, or 3.1%, at $1.8575 per lb after setting a 3-1/2 month high of $1.8685.
* The contract gained 6.36% in the week.
* Brazilian coffee farmers sold 78% of the current crop (2022/23, July-June) by Feb. 15, a slower selling pace than seen at this time previously, consultancy Safras & Mercado said.
* May robusta coffee LRCc2rose $26, or 1.3%, at $2,098 a tonne. The contract gained 3% in the week.
SUGAR
* March raw sugar SBc1fell 0.04 cents, or 0.2%, at 21.41 cents per lb. The position lost 0.8% in the week.
* Fitch Solutions said in a note that global sugar prices were deriving support from several factors, including the diversion of sugarcane towards ethanol production in India and uncertainty over European production after a pesticide ban.
* May white sugar LSUc1 rose $0.40, or 0.1%, at $568.00 a tonne, having lost 0.5% in the week.
(Reporting by Marcelo Teixeira and Nigel Hunt; Editing by David Goodman, Kirsten Donovan and Shailesh Kuber)
((marcelo.teixeira@tr.com; +1 332 220 8062; Reuters Messaging: marcelo.teixeira.thomsonreuters.com@reuters.net – https://twitter.com/tx_marcelo))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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