London cocoa sets one-month peak, coffee also rises

By Reuters News
FILE PHOTO: Cocoa pods grow on a farm Osino in the Eastern Region, Ghana, February 27, 2024. REUTERS/Francis Kokoroko/File Photo

NEW YORK, Oct 14 (Reuters) - London cocoa futures rose to a one-month high on Wednesday, supported by concerns that dry weather could curb production in West Africa this season.


COCOA

* London cocoa ​settled up £25, or 0.6%, at £4,317 per metric ton, after setting a one-month high of £4,499.

* Dealers said dry weather in Ivory Coast and parts of Ghana had contributed to the run-up in prices, intensifying concerns about the impact of an El Nino weather event on crops.

* They noted third-quarter cocoa grind data should provide a short-term focus. Reports covering both Europe and North America are due to be released on Thursday.

* Ivory Coast's cocoa grind rose 46.6% year-on-year in September to 49,517 metric tons of beans, data from exporters' association GEPEX showed on Wednesday.

* New York cocoa was little changed at $5,735 a ton.


COFFEE

* Arabica coffee settled up 5.35 cents, or 1.8%, at $2.9805 per lb​​, a one-week high.

* Dealers said the market was supported partly by concerns that an El Nino event will curb global production in the 2027/28 season.

* The recent strength of Brazil's real currency , linked to the growing expectations that Flavio Bolsonaro will be elected president after his victory in the first round, has also boosted dollar-denominated prices.

* A strong real reduces the incentive for farmers in Brazil to sell their coffee by lowering dollar-based prices in local currency terms.

* Robusta coffee gained 0.7% to $3,483 a ton.


SUGAR

* Raw sugar ​settled down 0.27 cent, or 1.3%, at 20.84 cents per lb.

* Dealers said the market has lost upward momentum after climbing to a 19-month peak of 21.24 cents on October 7 and looked set to remain range-bound in the short term.

* The market remained underpinned by rains in Brazil, which had slowed production in September and the first half of October.

* White sugar lost 1.2% to $554.90 a ton.

* The German government has diluted a planned sugary-drink tax and proposed exemptions for small manufacturers, easing a coalition dispute that had held up the bill.

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