NEW YORK/LONDON, March 21, 2011 - Cocoa futures climbedon Monday on investor buying after last week's steep sell-offand the trade mulled if the virtual civil war in top cocoagrower Ivory Coast could be resolved at all, analysts said.
The softs complex continued to carefully monitor the outbreak of fighting in Libya and the disaster in Japan. Cocoa futures retained their firm tone because incumbent Laurent Gbagbo and rival presidential claimant AlassaneOuattara have been locked in a violent power struggle forcontrol of a country that produces 40 percent of the world's
cocoa beans. Cocoa exports have dried up as a result.
New York's May cocoa contract went up $62 to end at $3,189 per tonne. On Friday, the contract slid $155 or by 4.7 percent to close at $3,127 per tonne.
London's Liffe May cocoa futures gained 47 pounds to end at 2,050 pounds per tonne. Last Friday, it fell 123 pounds or by 5.8 percent to close at 2,003 pounds.
Volume in New York stood at 15,400 lots, almost 10 percent below the 39-day norm, Thomson Reuters preliminary data showed.
"The situation in Ivory Coast hasn't improved," said Sterling Smith, a senior analyst for brokers Country Hedging Inc in St. Paul, Minnesota.
Another broker said there may be discreet talks to convince Gbagbo to leave, although he is still recruiting fighters for his cause.
"We got a modest rebound, but not much more that," a dealer
said.
COFFEE FIRMER, BUT SUGAR RETREATS
Coffee futures were higher, with low global coffee stocks contributing to the steadier tone in bean values.
Trade sources said a leading trade house was believed to be the major holder of exchange stocks while supplies from origin were proving hard to obtain.
In the London robusta market, May's premium over July remained firm at $165 a tonne, supported by short-covering, dealers said.
London robustas were supported by a lack of selling activity on the physical market.
"There's not a shortage, the coffee is in origin and there's still four to five weeks to ship it," a European trader said, referring to Vietnamese robusta beans.
London's May robusta futures went up $17 to finish
at $2,613 a tonne. New York's May arabica coffee contract
rose 0.80 cent to close at $2.77 a lb.
Sugar futures declined, with the market possibly discouraged by news that India is likely to allow only 200,000 tonnes of sugar exports, lower than the 500,000 tonnes permitted earlier. **********
India has initially announced it would export 2 million
tonnes of sugar, then it went down to 1.5 and then 1 million
tonnes and eventually 500,000 tonnes.
New York's May raw sugar contract on ICE Futures
U.S. shed 0.14 cent to trade at 27.57 cents per lb by 1:54
p.m.. London's May white sugar futures fell $4.30 to
close at $706.30 per tonne.
