[ad_1]
Updates with comments and closing prices
NEW YORK/LONDON, July 20 (Reuters) – London cocoa prices on ICE rose to their highest in nearly a month on Wednesday as chocolate makers took advantage of recent price falls to restock, even as they expect demand to tail off going forward thanks to poor global growth. MKTS/GLOB
COCOA
* September London cocoa LCCc1 settled 13 pounds, or 0.7%, higher at 1,747 pounds per tonne, having earlier hit 1,755, its highest since late June.
* Dealers said cocoa and chocolate demand has been better than expected and that even though it is seen tailing off going forward, concerns are creeping in about the next crop in West Africa.
* The crop in the world’s top producing region has been developing well but this is unlikely to be maintained going forward as less fertiliser was applied, they said.
* Barry Callebaut BARN.S said its sales volumes grew 7.9% in the nine months to end-May. It noted, however, the global chocolate confectionery market grew only 1.4% during that period.
* September New York cocoa CCc1 rose $21, or 0.9%, to $2,368 a tonne.
SUGAR
* October raw sugar SBc1 fell 0.17 cent, or 0.9%, at 18.67 cents per lb, extending the previous session’s 2.9% decline.
* Dealers said it is difficult to see sugar prices rising in the short term after Brazilian oil giant Petrobras cut gasoline prices, a move that tends to prompt Brazil’s mills to ramp up sugar output at the expense of ethanol, a cane-based biofuel.
* They said the ethanol price in Brazil is currently below the equivalent of sugar at 17 cents in New York.
* Archer Consulting said Brazilian mills increased hedging on ICE in June, signalling an intention to produce more sugar.
* October white sugar LSUc1 fell $3.70, or 0.7%, at $535.90 a tonne.
COFFEE
* September arabica coffee KCc2 rose 1.65 cent, or 0.8%, at $2.1815 per lb with the market consolidating after climbing nearly 8% on Monday.
* Brazil’s Cooxupe, the world’s largest coffee co-op, said harvest in the area where it operates reached 42% of the fields, near the level seen at this time last year as farmers increased the pace recently.
* September robusta coffee LRCc2 was stable at $1,998 a tonne.
(Reporting by Marcelo Teixeira and Maytaal Angel; Editing by Shailesh Kuber and Krishna Chandra Eluri)
((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.
[ad_2]
Source link
