London cocoa steadies after hitting new four-month high above 7,000 pounds/tonne
LONDON, Nov 20 (Reuters) -London cocoa futures on ICE steadied on Wednesday after hitting a four-month high earlier in the session amid ongoing supply troubles in West Africa.
Arabica headed back up towards this week's 13-year peak.
COCOA
* March London cocoa LCCc2 edged up 0.3% to 6,984 a metric ton at 1421 GMT, having earlier hit its highest since mid-July at 7,078.
* The contract posted a stellar 22.19% gain last week, its highest ever weekly gain, as worries escalated over crop prospects in West Africa.
* Brokers StoneX noted that both TRS and CRA, two respected cocoa consultancies, have dropped their expected surplus forecast for the 2024/25 season due to adverse weather conditions in West Africa and Ecuador.
* The cocoa market is relying heavily on improved production this season after three successive seasons of deficits.
* March New York cocoa CCc2 dipped 0.2% to $8,549 a ton.
COFFEE
* March arabica coffee KCc2 rose 1.4% to $2.8520 a lb, having hit its highest since May 2011 on Monday at $2.9150.
* Local dealers in top arabica producer Brazil said the market is focussed on next year's crop and remains fearful that following the drought earlier this year it will be below par.
* They added that there is very little robusta around from both Vietnam and Brazil, and that this is increasing demand for arabica given the two coffee types are, to some extent, fungible.
* January robusta coffee LRCc2 rose 1.3% to $4,716 a metric ton.
SUGAR
* March raw sugar SBc1 fell 0.5% to 21.89 cents a lb, having posted a sixth consecutive weekly loss last week.
* French group Tereos, one of the world's largest sugar makers, reported an 18% drop in its first-half net profit, pressured by a fall in sugar and sweetener prices, and warned of a further decline in the second part of its fiscal year.
* March white sugar LSUc1 fell 0.7% to $564.50 a ton.
Reporting by Maytaal Angel. Editing by Jane Merriman
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