LONDON: Cocoa fell in New York and London as harvesting of the smaller of two annual crops in West Africa, the world’s biggest growing region, starts and supplies from Asia increase. Sugar slid.
Growers in top producer Ivory Coast have started harvesting the mid-crop, which is off to a slow start this year, according to Laurent Pipitone, director of the economic and statistics division at the International Cocoa Organization in London.
Output from third-ranking Indonesia may climb to 500,000 to 550,000 metric tons this year, up from 450,000 tons a year earlier, according to the country’s Cocoa Association. Indonesia’s harvest may peak this month or in June, La Odi Mandong, an association official, said on May 1.
“The cocoa market has been range-bound year-to-date as ample stocks left from the 2010-11 season and increasing product inventories have been countered by concerns about both the coming supply and strong grinding demand,” Keith Flury, an analyst at Rabobank International in London, said in a report e- mailed today.
“The upcoming light crop in West Africa coupled with Asian production will result in modest downward pressure.”
Cocoa for July delivery fell 1% to US$2,251 a ton by 8:33 a.m. on ICE Futures U.S. in New York. Cocoa for July delivery slid 0.3% to 1,547 pounds (US$2,442) a ton on NYSE Liffe in London.
Money managers increased bets on higher cocoa prices in London as of May 15, with the net-long position climbing to 29,775 contracts, up from 27,837 futures and options a week earlier, data published on the NYSE Liffe website today show.
“Due to larger speculator long positions, the London market looks more vulnerable in the short-term to sharp downside correction than the New York market,” Flury said.
Arabica coffee for July delivery rose 0.5% to US$1.8005 a pound in New York. Robusta beans for July delivery were down 0.2% to US$2,212 a ton in London, after touching US$2,237 a ton, the highest level since Sept. 5. A Bloomberg survey on March 26 predicted prices would climb as high as US$2,236 by the end of May.
Raw sugar for July delivery fell 0.1% to 20.46 cents a pound on ICE. White, or refined, sugar for August delivery slid 0.1% to US$569.60 a ton on NYSE Liffe. (Bloomberg/aph)
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