HSY

SOFTS-Cocoa back up to near record peaks; coffee and sugar fall

Credit: REUTERS/ANNEGRET HILSE

Adds comments and closing prices

NEW YORK, Feb 13 (Reuters) - Cocoa futures on the ICE exchange were back up on Tuesday after taking a breather in the previous session from a record-setting rally, while coffee and sugar prices slipped.

The higher-than-expected inflation numbers in the U.S. were seen as bearish for commodities as the dollar rose and investors cut exposure to riskier assets.

COCOA

* May London cocoa LCCc2​settled up 91 pounds, or 2%, to 4,701 pounds per metric ton.

* Cocoa fell on Monday for the first time in 12 trading sessions, having set its ninth successive record high on Friday at 4,786 pounds.

* Morgan Stanley has cut its guidance on chocolate maker Hershey HSY.N to underweight, citing caution over the company's mid-term outlook because of "outsized cocoa inflation ... and weaker consumer demand for confectionery".

* May New York cocoa CCc2 rose 1.2% to $5,652 a ton.

COFFEE

* May arabica coffee KCc2 settled down 3.1 cents, or 1.6%, at $1.8805 per lb.

* Dealers said ICE-certified arabica stocks have finally turned a corner and are heading higher, which is likely to weigh on prices. They rose nearly 15% in the last 20 days to 297,445 bags, and there are 57,259 bags pending grading.

* The weather in top producer Brazil has been dry since the beginning of February, but precipitation is expected to improve in the coming days.

* May robusta coffee LRCc2 fell 0.9% at $3,163 a ton.

SUGAR

* March raw sugar SBc1 ​settled down 0.26 cent, or 1.1%, at 23.30 cents per lb, having settled 1.9% down on Monday.

* Dealers noted the market is falling even when Brazilian mills, who are usually sellers in futures, are off due to Carnival holidays.

* Forecast for more rains in Brazil should give a boost to the new sugarcane crop.

* March white sugar LSUc1 fell 0.1% to $658.20 a ton.

(Reporting by Maytaal Angel and Marcelo Teixeira Editing by David Goodman and Anil D'Silva)

((marcelo.teixeira@tr.com; +1 332 220 8062; Reuters Messaging: marcelo.teixeira.thomsonreuters.com@reuters.net - https://twitter.com/tx_marcelo))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.