U.S. cocoa futures rumbled to a strong close within sight of a 32-year high, recovering strongly one session after prices crashed more than 11 percent.
Brent crude edged closer to 2-1/2-year highs as Libyan leader Muammar Gaddafi vowed to resist to the end a rebellion against his rule, and his top oil official warned of higher crude prices.
Sterling Smith, senior analyst for commodity brokerage Country Hedging Inc in Minnesota, said strong oil prices meant "more cane will be converted into ethanol and there will be less sugar for the market".
The cocoa market remained focused on top producer Ivory Coast, where youth supporters of incumbent Laurent Gbagbo rampaged through the business district of Abidjan on Tuesday, pillaging shops owned by foreigners.
"If there's a civil war then the (cocoa) price could go very much higher," said Gary Mead, an analyst at VM Group.
The market is weighing turmoil in Ivory Coast, which could disrupt supplies, and a forecast by the International Cocoa Organization that the global cocoa market will swing to surplus in the 2010/11 season due to rising output. [ID:nLDE7202HL]
New York's May cocoa contract rose $44 to close at $3,664 per tonne, shy of the 32-year settlement high at $3,695 and the intraday top of $3,712. Liffe's May cocoa contract added 21 pounds to finish at 2,346 pounds per tonne.
"Anyone who's short is ... fighting an incredible bull trend right now," said John Caruso, senior market strategist for brokerage Lind-Waldock in Chicago.
"You've got a lot of commodity and hedge funds that are speculating cocoa right now," he said.
Coffee futures were mixed, with arabicas losing steam after an early runup. New York's May arabica coffee futures rose 0.25 cent to trade at $2.6955 per lb. London's May robusta coffee fell $21 to conclude at $2,363 per tonne.
"I think the overall trend is higher. They're expecting very strong demand for coffee, no matter how high commodity prices go," Caruso said. source: https://portal.hpd.global.reuters.com/
"Anyone who's short is ... fighting an incredible bull trend right now," said John Caruso, senior market strategist for brokerage Lind-Waldock in Chicago.
"You've got a lot of commodity and hedge funds that are speculating cocoa right now," he said.
Coffee futures were mixed, with arabicas losing steam after an early runup. New York's May arabica coffee futures
"I think the overall trend is higher. They're expecting very strong demand for coffee, no matter how high commodity prices go," Caruso said. source: https://portal.hpd.global.reuters.com/
