Cocoa Falls in London on Signs of Ample Supplies; Coffee Drops
Cocoa fell in London amid signs of ample supplies as the West African harvest accelerates and demand slows.
Stockpiles in warehouses monitored by NYSE Liffe rose 19 percent in the past two weeks to 60,210 metric tons as of Oct. 28, the exchange said yesterday. The main harvest began last month in Ivory Coast, the world’s top producer, and output may be about 1.4 million tons, similar to the previous season, the government said. Most processors have finished cocoa buying to make chocolate before the Christmas holiday, said Sterling Smith, a futures specialist at Citigroup Inc. in Chicago.
“The cocoa bull market looks to be tiring as seasonal changes in demand are occurring,” Smith said in an e-mailed report. “The harvest weather has improved and is expected to continue for the next three weeks.”
Cocoa for March delivery fell 0.9 percent to 1,688 pounds ($2,701) a ton at 9:56 a.m. on NYSE Liffe in London, heading for a third straight weekly drop. Futures for December delivery declined 1.2 percent to $2,645 a pound on ICE Futures U.S. in New York.
Robusta coffee for January delivery fell 1.2 percent to $1,465 a ton in London. In New York, arabica coffee for December delivery dropped 0.5 percent to $1.0495 a pound, declining for a 14th session.
White sugar for March delivery decreased 0.2 percent to $488.10 a ton in London. Raw sugar futures in New York were little changed at 18.34 cents a pound.
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