NEW YORK, March 29, 2011 - U.S. cocoa declined sharply on closing and hit a two-month low on Tuesday. It is the heaviest volume traded in seven week. The price began to fall after toching the key technical level and as rebels in top grower Ivory Coast appeared on track to reach a key export port there.
Arabica coffee also closed lower, on chart-based pressure after falling below its head-and-shoulders pattern, while raw sugar reversed to settle slightly lower.
RAW SUGAR
- May contract of raw sugar finished down 0.03 cent at 27.02 cents per lb.
- Some brokers sad that market rebounded on investor and trade buying
- Market is well supported over 25 cents, said Heritage West Futures analyst Ralph Preston.
- Another trades said that there was a changed direction on late investor pressure
- Market is looking forward to next set of estimates by industry group Unica on Brazil's sugar production due out middle of this week.
COFFEE
- May arabica coffee futures to close at $2,645 or dropped 2.50 cents
- Market fell on technical selling, after breaking below a head-and shoulders pattern - traders.
- May contract attracted selling after falling through the neck of the pattern, around $2.6015
- Brokers said that roaster demand has eased ahead of the summer season in the Northern Hemisphere, allowing the market to fall easily.
COCOA
- May cocoa futures tumbled 5.9 percent to finished at $ 3,057 or down $191 . This price is the lowest settlement for the spot contract since Jan. 18.
- Total volume around 31,503 lots, the highest since Feb. 8 according to Thomson Teuter data
- May broke through 100-day moving average at $3,150, triggering long liquidation by funds
- Trader said that another bearish factor pushed May then fell through the 200-day moving average at $3,042.
- In Ivory, the biggest cocoa producer, Forces loyal to Ivory Coast presidential claimant Alassane Ouattara seized two major towns in the western cocoa belt in an offensive that is also picking up momentum in the east of the country.
- Rebels moved closer to major port San Pedro, this situation brought opinion that the cocoa export from Ivory can be done immediately .
