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Updates prices
LONDON, Feb 17 (Reuters) – London cocoa futures on ICE rose to their highest in more than six years on Friday, as tight supplies in Ivory Coast raise concern about potential defaults in the world’s top producer.
COCOA
* May London cocoa LCCc2 rose 1.2% to 2,138 pounds a tonne by 1510 GMT 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.
* May New York cocoa CCc2 rose 1.2% to $2,779 a tonne.
COFFEE
* May arabica coffee KCc2 rose 3.25% to $1.8610 per lb after setting a 3-1/2 month high of $1.8685.
* The contract was on track for a fifth consecutive weekly gain.
* “Supply risks are likely to have played an important part in this (recent gains). The crop is at risk due to heavy rainfall in both Brazil and Colombia, the two leading arabica producers,” Commerzbank said in a note.
* Brazil’s coffee production is expected rise in the upcoming 2023/24 season but the increase is likely to be smaller than expected a few months ago.
* May robusta coffee LRCc2 was up 1.25% at $2,098 a tonne.
SUGAR
* March raw sugar SBc1 rose 0.4% to 21.54 cents per lb.
* 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 0.5% to $570.60 a tonne.
(Reporting by Nigel Hunt Editing by David Goodman, Kirsten Donovan)
(( nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net))
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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