Search This Blog

Monday, February 28, 2011

Ban calls for UN meeting on Ivory Coast

UN Secretary-General Ban Ki-moon called Monday for an urgent Security Council meeting on Ivory Coast following reports of illegal arms deliveries to one of the warring factions there.
"The secretary-general hopes that the Security Council will consider convening urgently a meeting to discuss this issue," a spokesman for Ban said.
The appeal follows reports that three attack helicopters and related materiel from Belarus were being delivered to Yamoussoukro to forces led by outgoing president Laurent Gbagbo.
The first delivery arrived reportedly on a flight which landed late Sunday, and additional flights are scheduled for Monday, the spokesman said.
"This is a serious violation of the embargo against Côte d'Ivoire (Ivory Coast) which has been in place since 2004," the spokesman said.
"The secretary-general demands full compliance with the arms embargo and warns both the supplier of this military equipment and Mr. Gbagbo that appropriate action will be taken in response to the violation."
Ivory Coast has been gripped by increasing unrest since a presidential poll on November 28, which much of the international community acknowledges was won by opposition leader Alassane Ouattara.

source: http://www.france24.com/en/20110228-ban-calls-un-meeting-ivory-coast

Ivorian conflict propels ICE cocoa to 32-year high

* Cocoa arrivals at Ivorian ports well below year ago levels
* Coffee prices resume advance after downside correction
* Sugar market eyes expiry of March raws on ICE
Cocoa futures on ICE rose to a 32-year high on Monday as fears of civil war in top producer Ivory Coast increased after fighting intensified over the weekend, dealers said.
Raw sugar futures advanced as the market eyed Monday's expiry of the March raws contract on ICE <SBH1 while arabica coffee were also higher.

Broadcasts of Ivory Coast's state television went down across the main city on Sunday after a transmitter was damaged in fighting between forces loyal to incumbent leader Laurent Gbagbo and rival groups.
May cocoa on ICE rose $31 or 0.85 percent to a peak of $3,670 tonne by 1220 GMT.
The European Union has imposed sanctions on Gbagbo and people and institutions helping him stay in power after a November election he is widely recognised to have lost to presidential claimant Alassane Ouattara.
The institutions include the cocoa authorities and ports.

A halt to cocoa-buying in Ivory Coast because of sanctions and liquidity problems has spurred smuggling of cocoa through neighbours like Ghana, farmers say, as the alternative is to let it rot on farms.

"At the moment there's at least some movement of cocoa across borders," a London-based broker said, adding this could cease if civil war broke out.

Exporters estimated only around 1,000 tonnes of beans were delivered to the West African state's two ports between Feb. 22 and Feb. 27, down from 9,003 tonnes in the same week a year ago.
Dealers said the market remained well underpinned at current levels.

"There's no natural selling in the market right now, the market goes up very easily," the broker said.
May cocoa on Liffe rose 4 pounds or 0.2 percent to 2,372 pounds a tonne.
MARCH RAWS EXPIRY

Sugar prices were higher with the market's focus on Monday's expiry of the March contract on ICE with deliveries expected to total about one million tonnes.
March raws was up 0.38 cent or 1.2 percent at 31.90 cents a lb with its premium to May roughly stable in the run-up to expiry at about 2.80 to 2.85 cents.
The market's improved performance during the last couple of sessions was seen boosting the technical outlook.

"New York sugar futures rose above their steep downtrend Friday, opening upside potential," Brenda Sullivan, technical analyst at Sucden said.

Sugar prices have fallen by around 12 percent since hitting a 30-year high of 36.08 cents a lb on February 2.
May whites on Liffe rose $7.30 or 1.0 percent to $733.70 a tonne.

Arabica coffee futures were also higher with the market beginning to resume its uptrend after a setback during the second half of last week. May arabica coffee on ICE rose 4.10 cents or 1.5 percent to $2.7190 per lb.
The contract peaked at $2.7840 per lb last Tuesday, the highest level for the benchmark second month since 1977, but corrected lower on Wednesday and Thursday before stabilising on Friday.

"This may suggest short-term consolidation and even slight gains, but the daily indicators still show the risk for another test lower," Sucden's Brenda Sullivan said.
May robusta coffee futures on Liffe rose $46 or 2.0 percent to $2,385 a tonne. 

* Prices as of 1218 GMT
source: http://news.alibaba.com/article/detail/food/100447969-1-softs-ivorian-conflict-propels-ice-cocoa.html

Coffee continues to hover near the contract highs

Coffee continues to hover near the contract highs and is worthy of put accumulation at these levels. Cocoa is at a fresh contract high as well and is rallying on fears of a sustained export ban in the Ivory Coast. This is a truly historic opportunity to get short cocoa as a top is anticipated and the downside fallout could be monumental. Cotton is making another attempt, its 3rd since the initial breakout rally, of reversing a sharp selloff to hit fresh highs. I do not believe cotton has it in it to make another major move higher, but then again I did not suspect that had it in it to rally last month either. Sustained buying is occurring because of a real shortage of supply, and if real delivery is needed then epic short covering and price surges have little choice but to happen and run until the buying demand is exhausted. When will the buying demand be exhausted? I believe there is a real likelihood that the high is already in and this current attempt to rally will be met with strong selling well below 208 on the futures. OJ continues to make new highs but is fast approaching critical resistance at 190. If broken the market has little technically stopping a run to the 2007 highs of 210. 
source: http://www.fxstreet.com/technical/market-view/the-weekend-commodities-review0109/2011/02/28/

COFFEE AND COCOA FORECATS FOR TODAY AND MARKET CLOSING REVIEW, 25 feb 2011


* Rebels capture town in western Ivory Coast
    * Coffee market edges higher underpinned by tight supplies
    * Sugar market eyes Monday's expiry of March raws on ICE
Cocoa futures on ICE rose to close  at a 32-year high Friday as rebels seized a town in top grower Ivory Coast,  while raw sugar rebounded ahead of the March contract's expiry Monday.      Coffee prices rose after a two-day setback.      
The United Nations Secretary General said Ivory Coast was closer to the  brink of a new civil war after rebels controlling the north seized a town  in government territory and were heading south.
    "Of course the instability in the Ivory Coast is the main reason for  the push up," said Derrick Lewis, a senior trader with brokerage Cleartrade  Commodities in Chicago.
    May cocoa on ICE  rose $14 to finish at $3,639 per tonne, the  highest settlement since January 1979, after touching a session high at  $3,650. This widened the premium of May to $66 compared with July   from $65 on Thursday.
    The contract has risen about $600, or 28 percent, since early January  as the crisis in Ivory Coast has deepened. Volume, however, was thin at  about 8,500 lots, down about 60 percent from the 30-day average.
    "Until the situation is settled, there's concern about supply," Lewis said, referring to the reason for the premium.
    The sterling-based Liffe contract was also higher with May < closing up 18 pounds at 2,368 pounds a tonne, after hitting the highest for  the second position since July 2010 at 2,377 pounds.
    "Most of the people that we speak to are now leaving the country  because it's too dangerous," a European trader said, adding the country's  cocoa industry was at a standstill.
POSITI     DIFFICULT ON  
    "The (cocoa) trade is in a difficult position, on the one side  (presidential claimant Alassane) Ouattara wants them to continue to buy  from the farmers because they need the money, on the other Gbagbo says keep  exporting because he needs the money," plus there's EU sanctions in place,  the trader said.
    Raw sugar futures were higher with the market's focus on Monday's  expiry of the March contract.
    The nearby premium closed at 2.78 cents a lb, widening from 2.39 cents  at the close on Thursday, with the decision by Russia earlier this week to  cut import tariffs  seen increasing the appetite to take  delivery.
    May raw sugar futures  jumped 0.91 cent or 3 percent to finish at  28.74 cents per lb while May white sugar on Liffe rose $21.40 to  finish at $726.40 per tonne.
    Arabica coffee futures on ICE were higher as the market began to creep  back up towards Tuesday's peaks which were the highest levels seen in 34  years at $2.7840 per lb, basis May.
    The market suffered its weakest two-day performance in a month on  Wednesday and Thursday with the setback seen largely as a technical  correction after its prolonged advance and as investors got out of their  long positions.
    May arabica coffee  rose 3.15 cents to finish at $2.6780 per lb,  in an inside day.      A shortage of high quality arabica coffee from Colombia, suffering from  several consecutive smaller crops, has fueled the coffee rally and a  drawdown of stocks.
    "The funds are very heavily long so a bit of a wash out could be on the  cards but I am not sure we will see a calamitous collapse as stocks remain  so low," said a London-based broker.
    May robusta coffee  gained $10 to finish at $2,339 a tonne as  dealers noted a pick-up in exports from top robusta producer Vietnam.  
    Vietnam's February coffee exports rose around 16.9 percent from the  same month in 2010 to 90,000 tonnes, or 1.5 million bags, in line with  market expectations, and could offer some relief to tight markets. 
source: https://portal.hpd.global.reuters.com/site/applist.aspx

Liffe cocoa sets 7-month peak on Ivorian conflict


    * Liffe May cocoa  ends up 18 pounds at 2,368 pounds a tonne after earlier hitting 2,377 pounds, the highest level for the benchmark second month since July 2010. Market supported by fighting in top grower Ivory Coast which has raised the prospect of a return to open war.

   * Liffe May robusta coffee <LRCc2> ends up $10 at $2,339 a tonne. Market supported by renewed strength in arabica market although a rise in exports from Vietnam helped to cap gains.

   * Liffe May white sugar <LSUc1> rises $21.40 to close at $726.40 a tonne. Market remains extremely volatile in the run-up to Monday's expiry of the March raw sugar contract on ICE.
https://portal.hpd.global.reuters.com/site/applist.aspx