LONDON: New York cocoa futures rose on Tuesday boosted by signs that production in top grower Ivory Coast this season may be smaller than previously expected while sugar prices turned lower after hitting a 2-1/2 week peak.
Cocoa
New York cocoa rose 3% to $8,060 a metric ton by 1319 GMT.
Dealers said the market was supported by concerns that dry weather will reduce the size of the mid-crop in Ivory Coast and a slowdown in port arrivals in the world’s top producer.
London cocoa rose 2.4% to 6,246 pounds a ton.
Cocoa, coffee drift lower
Sugar
Raw sugar futures were down 0.7% at 19.83 cents per lb after earlier hitting a 2-1/2 week high of 20.03 cents.
Dealers said the recent run-up had been fuelled partly by a further deterioration in the crop outlook in India.
There have also been concerns that dry weather in February and March may reduce prospects for Brazil’s 2025/26 cane crop.
White sugar was 0.4% lower at $562.70 a ton.
Coffee
Arabica coffee rose 0.9% to $3.8690 per lb.
Dealers said the market’s main focus remained on the outlook for this year’s crop in Brazil and the extent to which rains in some areas may improve prospects.
“Rains across central areas over the next couple of weeks should slowly improve moisture there. However, lesser rains elsewhere will allow dryness and stress on growth to continue,” weather service Maxar said in a report.
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