Raw sugar dips from near two-month high, cocoa ste
       Date 13-May-2015
       Source Business Recorder
       Reporter Rehman Siddiqui
       News Id 1715
Raw sugar futures on ICE eased on Tuesday from a near two-month high, yet underpinned by strong export differentials, while cocoa steadied, pressured by a strengthening pound. Arabica coffee futures edged up on light buying, supported by a weaker dollar. In sugar, traders focused on talk of brisk vessel nominations after a massive delivery against expiry of the May raw sugar contract. "There seems to be the sense that the large delivery is causing short term tightness in the market," said Hamish Smith, commodity analyst with Capital Economics. Traders estimated that vessels for 600,000-800,000 tonnes of sugar for the record May delivery have been nominated, while there was talk of even more vessel nominations having taken place. This caused some who are in need of sugar to scramble for supplies, lifting the export differential to a small premium compared with a discount at this time last year, traders said. "Physical premiums are picking up," said Michael Liddiard, consultant with Agrilion. "The wet weather in centre-south Brazil is slowing production a tiny bit," he added. July raw sugar futures on ICE were down 0.02 cent, or 0.2 percent, at 13.46 cents a lb at 1322 GMT, after peaking on Monday at 13.55 cents, the contract’s highest level since March 9. August white sugar on ICE was down 60 cents, or 0.2 percent, at $382.60 per tonne. In cocoa, concerns over smaller-than-expected supply from No. 2 grower Ghana supported prices. A strong pound capped the upside in London cocoa futures, as sterling-based positions were more expensive in other currencies. Sterling hit 2015 highs on Tuesday, rising past $1.56 against the dollar, after better-than-expected British industrial output data. "The biggest issue for the cocoa market is the size of the Ghana crop," Smith said. "From all accounts, the mid crop isn’t going to be overly good. A key question is the extent to which the Ivory Coast crop can offset the effect of Ghana." London July cocoa traded up 2 pounds, or 0.1 percent, at 2,018 pounds a tonne. New York July cocoa was up $4, or 0.1 percent, at $3,010 a tonne, having earlier hit $3,022 a tonne, a two-month high. Arabica coffee futures nudged higher, with July up 0.4 cent, or 0.3 percent, at $1.3475 per lb. July robusta coffee edged down $7, or 0.4 percent, at $1,737 a tonne.