Ivorian rains help cocoa mid-crop, harvest starts

ABIDJAN, March 22, 2011 - Good rains mixed with lengthy sunny spells last week in Ivory Coast's cocoa regions boded well for the development of the mid-crop about to be harvested, farmersand analysts said.

The October to March main crop is tailing off and all eyes are on the April to September mid-crop.

Many farmers in the bush said harvesting have already started but remained small. Farmers added they were happy with the state of plantations, with many pods of big, small and average size on trees -- although paralysis of the cocoa sector because of Ivory Coast's political crisis continues.

Cocoa exporters say Ivorian export embargo holding

ABIDJAN/LONDON, March 22, 2011 - Cocoa exporters dismissed on Tuesday a media report that some were preparing to resume payment of export taxes to Ivory Coast's Laurent Gbagbo, saying a de facto embargo on shipments was holding.

Gbagbo has refused to step down after a November election, which most of the world says he lost. Alassane Ouattara, the internationally recognised winner, has called for a freeze in cocoa exports to deprive the Gbagbo camp of funds.

NY Cocoa Market Close Review For Today, March 22, 2011

U.S. cocoa futures closed strong, on a small upside correction and a lift from the strong sterling against the dollar.

* Key May cocoa futures rose $74 or 2.3 percent to  finish at $3,263 per tonne.
 

* Market slightly corrected higher from its recent sell-off with a lift from the strong sterling against the U.S. dollar - traders.
 

* May has fallen 18 percent from the 32-year high at $3,775  per tonne on March 4, after the risk premium had been worked into the market on instability in top grower Ivory Coast, and as the May/July spread narrowed as supply fears eased - traders.
 

* Fund liquidation and commercial buying kept the market choppy - traders.
 

* The U.N. peacekeeping mission to Ivory Coast said Laurent Gbagbo's forces were readying an attack helicopter and multiple rocket launchers and condemned the growing use of heavy weapons against civilians. 

* Good rains mixed with lengthy sunny spells last week in  Ivory Coast's cocoa regions boded well for the development of  the mid-crop about to be harvested - farmers, analysts. *****

NY Coffee Market Close Review For Today, March 22, 2011

NY Arabica coffee  finished weak, on chart-based selling and a lack of near-term demand.

* May arabica coffee futures tumbled 3.55 cents to  finish at $2.7345 per lb.
 

* Market fell on technical selling after failing to breach  the 62 percent Fibonacci retracement level at $2.83, basis May, on Monday, indicating a short-term downtrend - traders.
 

* "Right now there's no short-term demand for coffee.  There's coffee being offered in Central America and nobody's  buying." - Nick Gentile, chief trading officer at Atlantic  Capital Advisors in Jersey City.
 

* Market pressured by a lack of fund participation and roaster buying, although tight supplies were still considered underpinning the market in the long-term - traders.*******

LIFFE COFFEE AND COCOA MARKET CLOSE RIVIEW FOR TODAY

* Liffe July cocoa ends 34 pounds higher at 2,085  pounds a tonne. Market beginning to rebound, with industry buying emerging following the recent slide in values, which saw  the second position hit a two-month low of 1,994 pounds on
Monday.
 

* Liffe May robusta coffee ends $44 lower at $2,569  a tonne. Market slipping back from a three-year high set late  last week but remains underpinned by tight supplies. ******

Tanzania sees lower 2011/12 coffee crop on drought

AR ES SALAAM, March 22 , 2011 - Tanzania expects its 2011/12 (June/April) coffee crop to drop by 18 percent to 45,000 tonnes, hurt by drought in many growing areas of the east African producer, regulator Tanzania Coffee Board (TCB) said on Tuesday.

The board expects production to come in at 56,000 tonnes in the 2010/11 season, 1,000 tonnes above its earlier forecast, and compared with 36,000 tonnes of the previous crop year.

"Prolonged dry weather in some coffee growing regions of Tanzania has affected the flowering of coffee trees," Adolph Kumburu, TCB's chief executive, told Reuters.

COFFEE AND COCOA PRICE FOR TODAY ( UPDATE ) : Coffee eases on bearish indicators, cocoa edges up

LONDON, March 22, 2011 - Coffee prices eased on Tuesday, with arabicas retreating further from a 34-year high earlier this month, weighed down by bearish technical indicators.

Cocoa prices rose, boosted by a pick-up in industry demand following a recent setback in prices, while sugar futures were mostly steady.

May arabica coffee on ICE dipped 0.80 cents or 0.3 percent to $2.7620 per lb by 1127 GMT, while July eased 1.15 cents to $2.78.

Ivory Coast Violence May Destabilise Region

Thousands of young supporters have offered to join Ivory Coast's army and fight for its incumbent president, amid fears the continuing violence may destabilise West Africa.

Leader Laurent Gbagobo is refusing to quit office despite UN-backed results showing his rival Alassane Ouattara won last November's election.

Mr Gbagobo's supporters packed into a stadium in the main city of Abidjan to sign up for the army, chanting "we will kill them now" and "the rebels will die".

Vietnam Coffee-Sales moderate, Indonesia beans eyed

HANOI, March 22, 2011 - Vietnamese coffee prices have risen more than 5 percent in the past week, tracking higher prices in London, but sales were moderate as buyers looked at fresh beans from rival robusta producer Indonesia, traders said.

"Prices in Indonesia are competitive so buyers are looking there," a trader at a foreign company in Ho Chi Minh City said.

Robusta in Indonesia was stable in the week ending March 21 at $2,420-$2,440 a tonne, free-on-board (FOB) Lampung, even though the harvest this year is forecast to drop 30 percent from 600,000 tonnes in 2010.