29 Oct 2008
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* Arabica coffee ends at 15-1/2-month low
* Cocoa market ignores strike in top grower
NEW YORK/LONDON, Oct 28 (Reuters) - Sugar and U.S. cocoa followed the recovery in stock markets, climbing in thin volume on Tuesday, but concerns over a global recession continued to hang over the soft commodity complex.
"For the most part, we're just witnessing a consolidation.
I won't even call this a bounce, it's just a tad affirming today. The (downward) trend is clearly in place," said Ralph Preston, analyst for HeritageWestFutures.com in
Coffee and
"Right now, (arabica) coffee is flirting, at least on the December contract, with another contract low. I don't think we're beating a dead horse here by pointing our finger at the strengthening dollar,"
Global stocks roared back from five-year lows on Tuesday as investors cheered a thaw in credit markets. Investors indulged in a burst of bargain hunting after five-straight global trading sessions of steep losses.
"It's a technical correction to an oversold market," said David Sadler, a senior sugar futures trader, referring to the short-covering that buoyed the soft commodities complex earlier.
ICE March raw sugar <SBH9> finished up 0.18 cent at 11.14 cents per lb.
"Overall, the market is still bearish," a senior dealer for a brokerage house said, adding rebound was expected given the recent steep losses in sugar and other commodity products.
The softs dealt in thin volumes with boosts from short-covering and technical speculative price action, while some participants holding short positions took profits, dealers said.
Coffee teetered as the buying interest waned and the dollar climbed.
December arabicas <KCZ8> closed down 0.05 cent at $1.0770 per lb, the lowest settlement for the spot-month contract since July 9, 2007, on a continuation chart.
January robustas <LKDF9> finished flat at $1,604 per tonne.
Meanwhile, cocoa futures ended mixed with support coming from the firm sterling <GBP=> against the dollar and as the market appeared to ignore a farmers' strike in top producer
The benchmark ICE December cocoa <CCZ8> settled up $10 at $1,966 per tonne.
Source : Thomson Reuters
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