Softs - Cocoa eases on profit taking after hitting year-high; coffee, sugar down |
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Wed, 27 Jun 2007 13:22
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LONDON (Thomson Financial) - Cocoa eased as traders locked in profits with prices at sky high levels, while few were prepared to buy at elevated levels.Cocoa futures on the Euronext Liffe exchange topped 1,100 stg, a key psychological level, both today and yesterday but failed to hold at those levels.'The industry is not interested in these prices, it's looking for a deeper retracement,' said a trader.At 12.56 pm, September Cocoa was down at 1,094 stg a tonne on the Euronext Liffe against 1,099 stg at the close yesterday, having struck 1,102 stg earlier. Yesterday, cocoa rose to 1,104 stg, its highest price so far this year.In the longer term, forecasts for a global deficit in the 2006/07 (September to October) season are likely to support cocoa prices, said traders.The International Cocoa Organisation's latest forecast stands at a deficit of between 100,000 and 125,000 tonnes.Elsewhere, Robusta coffee was also lower but near elevated levels. Robusta, the lower grade bean compared with Arabica, has gained 21 pct since the start of this year, and is up 50 pct year-on-year.'London continues to hold steady as the major longs sit tight,' said Sucden analyst, Michael Davies. 'We await a new lead from here,' he added.Robusta coffee for September delivery was down at 1,887 usd a tonne on the Euronext Liffe against 1,891 usd at the close yesterday.Meanwhile, white sugar for October delivery was also lower at 311.50 usd a tonne on the Euronext Liffe exchange, against 312.60 usd.anealla.safdar@thomson.comas/cm2COPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Softs - Cocoa steady at higher levels on technicals, supportive outlook 