Sucden Takes 71% of Cocoa Delivered in London for September

Sucres et Denrees SA took 71 percent of all the cocoa delivered against the expired September futures on the NYSE Liffe exchange in London.

The Paris-based trader bought 13,210 metric tons of the beans, said Derek Chambers, head of cocoa at company, known as Sucden. The total delivery amounted to 18,670 tons and was the biggest since the May contract expired, data on the exchange’s website today showed. Beans from Ivory Coast, the world’s largest producer, amounted to 11,320 tons and Sucden was the receiver of 5,860 tons of those, the data showed.

“Nearby cocoa is of good value, given the high prices at auctions in Ivory Coast,” Chambers said by phone from Paris today. Most grades of cocoa were trading at a premium to the exchange in the physical market, he said.

Cocoa futures for September delivery expired last week at 1,699 pounds ($2,707) a ton, putting Sucden’s purchase at about 22.4 million pounds, according to Bloomberg calculations. The total delivery was valued at 31.7 million pounds.

Beans from Ivory Coast for shipment from October to December were offered at this morning’s auction at a minimum price of 1,350 CFA francs ($2.74) a kilogram (2.2 pounds), according to data on the website of industry regulator Le Conseil du Cafe-Cacao. That equates to about 1,720 pounds a ton.

Broker Sucden Financial Ltd., an arm of Sucres et Denrees, acted on behalf of the company. Newedge U.K. Financial Ltd. took delivery of 5,460 tons on behalf of a client, exchange data showed. Brokers delivering were ADM Investor Services International Ltd., Jefferies Bache Ltd., JP Morgan Securities Plc, BNP Paribas Commodity Futures Ltd. and Newedge U.K. Financial.

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