* Consumption growth triggers robusta coffee deficit
* Cocoa supported by turmoil in top grower Ivory Coast
* Sugar market awaits news on Indian exports
(updates with closing prices, additional background)
By Sarah McFarlane and Nigel Hunt
LONDON, Feb 21 (Reuters) - Robusta coffee futures climbed to
a fresh 2-1/2 year high on Monday as the market retained its
strong upward momentum, dealers said.
Cocoa futures on Liffe rose to 7-month highs as the market
eyed the deepening crisis in top grower Ivory Coast.
[ID:nLDE71K1ZA]
White sugar edged up in a modest rebound after the steep
setback in prices during the last couple of weeks.
ICE markets were shut on Monday for U.S. Presidents' Day.
"There's a lot of positive sentiment towards the coffee
market," said Andrea Thompson, analyst at CoffeeNetwork, noting
consumption growth was pushing the robusta market into deficit.
May robusta coffee LRCc2 ended $50 or 2.1 percent higher
at $2,387 a tonne. It earlier peaked at $2,389, the highest
level for the second month since July 2008.
The advance in coffee has been led by ICE arabica futures
KCc2 which gained 7.1 percent last week and rose to their
highest levels since May 1997, boosted by tight supplies
following several below-par harvests in key producer Colombia.
High arabica prices have encouraged roasters to increase the
volume of cheaper robusta beans in blends where possible.
"2010-11 should have been the third consecutive global
surplus for robusta but it's now looking at a deficit. The
Vietnam crop is fairly stable, it's really more the consumption
growth (driving the deficit)," Thompson said.
Vietnam is the world's top producer of robusta coffee.
Brazil, the world's biggest coffee producer, is holding back
its big bean stocks and hoping for improved market conditions in
a wager that world prices will keep on rising, its top coffee
official said on Friday. [ID:nN1846669]
PROTESTERS KILLED
Cocoa futures rose as tensions in Ivory Coast showed no sign
of easing and port arrivals slowed to a trickle, heightening
concern about supply from the world's top grower.
[ID:nLDE71K1ZA]
Ivorian troops killed at least four protesters calling on
Laurent Gbagbo to step down as leader on Monday, witnesses said,
as African presidents charged with resolving Ivory Coast's
crisis arrived in Abidjan. [ID:nLDE71K1E6]
European Union sanctions and an export ban imposed by
presidential claimant Alassane Ouattara have severely disrupted
shipments of cocoa out of Ivory Coast.
"Restriction to the flow of cocoa from the ports is no doubt
having an effect with numbers ranging from 200-300,000 tonnes
going nowhere, although allegedly smuggling is taking place," a
London-based broker said.
May cocoa on Liffe LCCc2 ended 23 pounds higher at 2,286
pounds a tonne after earlier touching 2,297 pounds, the highest
level for the second month since July 2010.
White sugar futures were slightly higher with the market
still keenly awaiting a decision from India on whether to export
500,000 tonnes under Open General License (OGL).
In December, India's farm minister had said mills could
export 500,000 tonnes of sugar under OGL. But the government,
bowing to public pressure over food prices, has referred the
issue to a panel of ministers.
May whites LSUc1 rose $3.90 to end at $724.50 a tonne
although prices remained far below a record peak for the front
month of $857.00 set on Feb. 2.
The market has been weighed partly by expectations there may
be a significant supply response to high prices. Consultancy
Kingman on Sunday forecast a global sugar surplus of 5.6 million
tonnes in 2011/12 (April/March). [ID:nLDE71J027]
Kingsman cautioned, however, that 2011/12 crop estimates
should be viewed in light of very low global sugar stocks and
climatic volatility.
"It will take months for the market situation to noticeably
ease and a slump in prices is therefore not on the cards for the
time being," Commerzbank said in a market report on Monday which
noted the Kingsman forecast.
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Reuters Insider shows from Kinsgman sugar conference
link.reuters.com/wak28r
link.reuters.com/wyk28r
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* Prices as of 1744 GMT
Product Last Change Pct Move End 2010 Ytd Pct
Liffe sugar 725.00 4.40 +0.61 777.50 -6.75
Liffe coffee 2388.00 51.00 +2.18 2097.00 13.88
Liffe cocoa 2286.00 23.00 +1.02 2029.00 12.67
Crude oil 91.25 5.05 +5.86 91.38 -0.14
Euro/dlr 1.37 0.00 -0.19 1.34 2.18
* ICE sugar and ICE coffee in cents per lb, ICE cocoa, Liffe
sugar and Liffe coffee in dollars per tonne. Liffe cocoa in
pounds per tonne.
(Source: http://af.reuters.com/article/commoditiesNews/idAFLDE71K19520110221)
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