Cocoa prices slip with market set to shift into surplus
LONDON, Aug 8 (Reuters) -Cocoa prices were lower on Thursday as favourable weather in West Africa raised the prospect of a global surplus in the upcoming 2024/25 season.
COCOA
* December New York cocoa CCc2 fell 1.7% to $6,901 a ton by 0921 GMT.
* A cocoa surplus of 108,500 tons is seen next season following a record deficit of 475,000 tons in 2023/24, a Reuters poll of 12 traders and analysts showed.
* Dealers noted, however, that there remained significant short-term supply tightness which had led to a sharp increase in the premium for the September contract CC-1=R to around $1,690 a ton from around $1,000 at the beginning of this month.
* ICE Futures US licensed warehouses reported that stocks totalled 2.85 million bags, as of Aug. 7, down from 3.14 million a month ago.
* "It is believed that supply shortages in the current season are forcing grinders to withdraw stocks, and pushing cocoa bean inventories in U.S. warehouses to their lowest in four years," ING said in a daily update.
* December London cocoa LCCc2 was down 2.25% at 5,379 pounds a ton.
COFFEE
* September arabica coffee KCc1 fell 0.5% to $2.4510 per lb, slipping back slightly after hitting a three-week high of $2.48 on Wednesday.
* Brazil's state weather forecaster CPTEC released an alert for possible frosts over the weekend, but they are not expected to hit the main coffee areas.
* September robusta coffee LRCc1 fell 0.3% to $4,466 a ton.
SUGAR
* October raw sugar SBc1 was down 0.3% at 18.09 cents per lb.
* Dealers were awaiting the release of data from industry group Unica on cane and sugar production in the key Centre-South region of Brazil.
* A survey conducted by S&P Global Commodity Insights had a median forecast for sugar production in the second half of July of 3.6 million tons, down 2.4% from a year earlier.
* October white sugar LSUc1 rose 0.2% to $515.50 a ton.
Reporting by Nigel Hunt; Editing by Emelia Sithole-Matarise
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.
