NY cocoa slips from record peak; coffee, sugar also fall
Adds background, updates prices
LONDON, Dec 19 (Reuters) -New York cocoa futures fell on Thursday, slipping further from the previous session's record high, while coffee and sugar prices were also lower.
COCOA
* New York cocoa futures on ICE CCc1 fell 3.8% to $12,092 a metric ton by 1525 GMT after setting a record high of $12,931 on Wednesday.
* Dealers said a diminishing outlook for production in top grower Ivory Coast this season had helped to fuel the recent run-up in prices, with the potential for a fourth consecutive global deficit in the 2024/25 season.
* "Recent weather reports suggest that current dry conditions in West Africa are posing threats to cocoa trees and are expected to hamper output in February and March next year," ING said in a note, adding that no rainfall is expected in the region for the next 7-10 days and the dry Harmattan wind could worsen the production outlook.
* London cocoa LCCc1 fell 3% to 9,630 pounds a ton.
COFFEE
* Robusta coffee LRCc2 was down 0.4% at $5,120 a ton, with the focus on the harvest in top robusta producer Vietnam.
* Coffee trading activities were thin in Vietnam this week ahead of Christmas, with supplies remaining low owing to harvest disruption from unfavourable weather in the country's main coffee-growing area, traders said on Thursday.
* "Harvest rates vary from farmer to farmer, with some finished and others just starting, but overall the harvest is probably around 30-60% (complete)," Hedgepoint Global Markets analyst Laleska Moda said after a trip to Vietnam's coffee production area.
* Arabica coffee futures on ICE KCc2 fell 0.5% to $3.2585 per lb.
SUGAR
* Raw sugar SBc1 lost 1.4% to 19.37 cents per lb, having hit a three-month low of 19.26 cents.
* India may allow some sugar exports, provided any surplus is left after ethanol blending, the government's food secretary said on Thursday.
* March white sugar LSUc1 fell 0.5% to $509 a ton.
Reporting by Nigel Hunt
Editing by David Goodman and Jane Merriman
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
