10 Oct 2007
Two weeks ago, prices had risen to two-month highs on concerns over tight supplies from leading producer the
However, with deliveries from the number one West African producer now arriving into port at a faster-than-expected rate, prices have retreated as market players try to gauge the strength of the overall crop.
One cocoa analyst said the higher-than-expected levels of supply had undermined the bull's case for the moment and they expected to see some more profit-taking while speculative players stuck to the sidelines until the size of the
However, they also cautioned that black pod disease still proved a significant threat to supply from the
At
In other softs traded, wheat prices are retreating further from their recent record highs, with some players fearing the recent rally has been overdone. News of a good crop from
Milling wheat for November delivery was down almost 7 pct at 235.50 eur per tonne against 253.25 eur on Euronext Liffe in
Elsewhere, Robusta coffee for November delivery was up to 1,950 usd against 1,915 usd at the close on Friday. Fears of more dry weather conditions in key producer
Fund money has also flowed into coffee, pushing up prices, with the latest Commitments of Traders report showing speculative net long positions - or bets on price rises - are up by almost 6,000 to 47,715 in the last week.
Finally, No 5 white sugar for December delivery was down at 273 usd a tonne on the Euronext Liffe against 275 usd at the close Friday, with the outlook for prices still muted on account of the global oversupply.
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