* Extension of Ivorian export ban propelled cocoa to peak
* Arabicas consolidate near highest level in over 30 years
* Sugar futures fall to reconnect with physical demand
(Recasts, updates prices, market activity; adds second byline, dateline, previously LONDON)
By Carole Vaporean and Sarah McFarlane
NEW YORK/LONDON, Feb 23 (Reuters) - ICE cocoa jumped on Wednesday, hitting a 32-year high after top producer Ivory Coast extended an export ban, while arabica coffee fell a day after advancing to 30-year peaks in light profit taking.
Sugar futures fell below recent three-decade highs as the market sought to reconnect with physical demand.
ICE May cocoa futures finished with $45, or 1.25 percent, gains at $3,631 a tonne.
The extension of Ivory Coast's export ban increased uncertainty about future world cocoa supplies, brokers said.
Liffe May cocoa was up 19 pounds or 0.8 percent to 2,357 pounds ($3,817) per tonne, having earlier touched a seven-month peak of 2,361 pounds per tonne.
"Until now trade have seemed reasonably relaxed, but this (Ivory Coast ban) doesn't look like being solved easily and uncertainty is what spooks markets," a UK-based analyst said.
Gunfire and explosions shook an area of Abidjan that supports Ivorian presidential claimant Alassane Ouattara on Tuesday, and at least three soldiers died in clashes with protesters calling on his rival to step down.
Declared purchases by private cocoa buyers to Ghana's industry regulator, Cocobod, reached 693,074 tonnes by Feb. 10, up 40.42 percent by the same point in the previous season, industry sources said on Tuesday.
New York cocoa is seen extending gains to $3,746 per tonne, based on a Fibonacci projection analysis, according to Reuters market analyst Wang Tao.
COFFEE, SUGAR
Arabica prices eased, after trading at the highest level in at least 30 years on Tuesday, as a shortage of high quality beans continued to support prices.
"Coffee's decline is just a correction after a massive move higher over four sessions. So, a bit of profit taking off the 30-year highs and a bit of a breather," said Bill Raffety, senior analyst at brokerage Penson Futures in New York.
Arabica prices have more than doubled since June 2010, underpinned by lower-than-expected output in high quality arabica producer Colombia for three consecutive crops.
"The focus still seems to be on the lack of tenderable material for New York," the analyst said.
In New York Arabica coffee futures for March fell 4.85 cents, or 1.77 percent, to settle at $2.6875 a lb.
Benchmark May coffee lost 4.90 cents, or 1.79 percent, to end at $2.6905 a lb.
"The pullback today was looking to bring some of the moving averages back in line on the daily chart, on limited profit taking after the previous four-day move up," said Raffety, adding that he sees support around the $2.64 to $2.65 area.
Liffe May robusta coffee traded up $2 at $2,384 per tonne in moderate volume of 7,475 lots.
Robusta coffee prices in Vietnam stayed near record highs on Wednesday, with farmers continuing to hold on to remaining thin stocks on hopes of further gains, traders said.
Sugar futures prices fell as the market sought to reconnect with physical demand. Prices fell below 30-year highs.
ICE March raw sugar futures closed down 1.02 cent or 3.29 percent, at 29.94 cents a lb. London May white sugar was down $23.0 or 3.20 percent at $696.0 per tonne in slim volume of 3,950 lots.
"The sugar fundamental situation still seems to favour the bulls, and we continue to see dips as buy opportunities," said Thomas Kujawa of broker Sucden Financial.
Indonesian state plantation PT Perkebunan Nusantara X failed to secure white sugar for the third time in a tender, seeking to buy 43,400 tonnes, said a tender official on Wednesday.
While the firm said the tender was annulled when a supplier failed to meet its requirements, traders said that buyers were hoping for lower prices.
No comments:
Post a Comment