* Vietnam coffee harvest resumes after storms
* Nearby supply tightness helps drive advance in cocoa
By Nigel Hunt
LONDON, Nov 18 (Reuters) - Cocoa prices rose on Tuesday,
boosted by concern about short-term supply tightness while raw
sugar eased, tracking losses in some other commodities linked to
the gloomy economic outlook, dealers said.
Dealers said the slow pace of arrivals at ports in top cocoa
producer Ivory Coast, combined with some options-related buying,
had triggered a sharp rise in the nearby premium this week and
created a more bullish mood in the market.
Benchmark March cocoa stood 39 pounds higher at 1,399 pounds
a tonne at 1613 GMT while March cocoa on ICE was $60 higher at
$2,037 a tonne.
December's premium to March in London was trading around 60
pounds on Tuesday, sharply up from about three pounds on Friday.
"People got a bit spooked (by the rising premium)," one
dealer said, adding concern about nearby tightness had prompted
short covering by both London and New York.
Raw sugar eased with the gloomy economic outlook keeping the
market on the defensive although early losses had been trimmed.
"I think we are following outside markets, that is all.
There is no physical news," one sugar dealer said.
ICE March raw sugar was down 0.14 cent or 1.2 percent to
11.60 cents, while March whites were unchanged at $322.90 a
tonne.
Dealers said sugar may consolidate in the short term between
$310 and $320, basis March whites, but the grim economic outlook
may eventually drive prices down further.
Ethiopia bought white sugar at a tender late last week for
$380.00 per tonne, cost and freight, trade sources said.
Estimates for the size of the purchase ranged from 42,000 to
53,000 tonnes. The sugar is expected to be delivered in the
first quarter of next year.
Arabica coffee futures were mostly higher as the market
extended a late rebound on Monday after sharp losses earlier in
the day when origin selling helped to trigger sell-stops.
Coffee farmers in Vietnam, the world's second largest
producer, resumed harvesting on Tuesday after a 2-day disruption
caused by rains from tropical storm Noul, traders said.
March arabica futures on ICE were up 0.05 cent at $1.1475
per lb after trading as low as $1.1060 on Monday.
January robustas in London were off $6 at $1,819 a tonne in
very heavy volume of 28,503 lots.
Dealers noted a large 25,000 lot trade on January which may
have been linked to removing coffee from the 5-tonne contract
with positions possibly to be reestablished in the 10-tonne
market. January is the last traded month on a 5-tonne basis.
Vietnam coffee shipments should rise nine percent to 1.2
million tonnes in 2009, a report from the country's Industry and
Trade Ministry said.
(Editing by David Evans)
- 
- 
- 
Welcome,
Guest!
News
