London cocoa hits five-month high on supply concerns
LONDON, Nov 22 (Reuters) -London cocoa futures rose to a five-month high on Friday, supported by supply concerns, while arabica coffee prices were hovering just below the prior session's 13-year high.
COCOA
* March London cocoa LCCc2 was up 4.5% at 7,388 pounds a metric ton by 1321 GMT after setting a five-month high of 7,425 pounds.
* Dealers said unfavourable weather in Ivory Coast, including the prospect of an early Harmattan this year was helping to support prices. Harmattan is a seasonal dry wind which blows from the Sahara desert and can harm cocoa pods and dry the soil, making beans smaller.
* They noted technical indicators were also supportive following the recent rise in prices.
* "We expect prices to edge higher in the near term, highlighted by recent bullish momentum and positive indicators; however, futures need to close above the current resistance of 7,348 (pounds a ton) to confirm the outlook for higher prices in the long term," broker Sucden Financial said in a note.
* March New York cocoa CCc2 rose by 4.2% to $8,994 a ton.
COFFEE
* March arabica coffee KCc2 rose by 0.3% to $2.9650 per lb, edging up towards the prior session's 13-year high of $2.9750.
* Dealers said the run-up in prices had been fuelled by concerns about next year's crop in Brazil with reports that trees have relatively low numbers of the cherries which contain the coffee beans.
* Dry weather earlier this year looks to have damaged the crop's potential despite rains in October.
* January robusta coffee LRCc2 rose by 0.4% to $4,805 a ton.
* Dealers noted the harvest in top robusta producer Vietnam was progressing well but farmers appeared in no rush to sell their beans.
SUGAR
* March raw sugar SBc1 fell by 0.1% to 21.35 cents per lb as the market continued to lack a clear overall trend.
* December white sugar LSUc1 rose by 0.1% at $554.20 a ton.
Reporting by Nigel Hunt; editing by David Evans
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