Soft Commodities Price Watch: Cocoa Retreats After Rally
iNVEZZ.com Friday, September 13th: Cocoa today fell for the first time in three days in New York yesterday on the prospect that rain will help crops in West Africa. Harvests in the largest producing region usually start next month. Speculation that dry weather would damage the new crops boosted prices yesterday to the highest level in almost a year. But according to Macquarie Group, a short rainy season usually in September in the Ivory Coast and Ghana has now started in central and northern growing areas.
“It’s raining a little bit,” Kona Haque, an analyst at Macquarie in London, said as quoted by Bloomberg. “Southern areas are going to be missed, which is a major cocoa producing belt.”
The cocoa price for December delivery on ICE Futures U.S. in New York yesterday fell as much as 0.2 percent to $2,566 a metric tonne and stood at $2,575 a metric tonne as of 12:00 BST. On Wednesday, the commodity climbed to $2,599, the highest for a most-active contract since September 17, 2012. In London, cocoa for December delivery today dropped 0.1 percent to £1,683 a tonne.
Among other soft commodities, the raw sugar price in New York fell for the first time in a week. The ICE contract for March delivery declined by 0.1 percent to $0.1763 a pound. The Arabica coffee price for December delivery slid 0.41 percent to $120.30 a pound on ICE.
**Grain Futures Mixed ahead of Key Report**
Grain futures were mixed in cautious trade yesterday, as market players looked ahead to a closely-watched monthly U.S. supply and demand report to gauge production prospects for corn and soybeans.
The soybean price for November delivery on the Chicago Board of Trade (CBOT) yesterday advanced as much as 0.25 percent to $13.6200 a bushel and was $13.5325 as of 12:15 BST. Elsewhere on the CBOT, the corn price for December delivery traded 0.69 percent down at $4.6925 a bushel, while
the wheat price for the same month of delivery traded at $6.4600 a bushel, down 0.31 percent on the day.
**Rubber at Two-Week Low as Yen Advances**
Rubber futures in Tokyo dropped to the lowest price in almost two weeks as the strengthening Japanese currency reduced the appeal of yen-based contracts and as Japan’s machinery orders trailed estimates.
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The yen gained against the dollar for a second day as traders speculated whether the U.S. economy is strong enough for the Federal Reserve to decide as early as next week to start reducing stimulus. Machinery orders rose 6.5 percent in July after climbing 4.9 percent in June, the Japanese government said. That missed economist estimates for 7.7 percent growth.
In early trade yesterday, the rubber price for February delivery on the Tokyo Commodity Exchange (TOCOM) fell as much as 1.6 percent to 278.5 yen a kilogramme ($2,799 a metric tonne), the lowest since September 2. Futures continued falling later during the session and as of 13:00 BST the contract stood at 273.20 yen a kilogramme, bringing yesterday’s drop to 1.76 percent.
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