Soft commodities price watch: Cocoa nears 25-month high in New York
iNVEZZ.com, Thursday, October 17th: Cocoa price today reached the highest level in almost 25 months in New York as a weaker dollar spurred buying of the beans traded in the US currency, while prices fell in London as the pound gained.
The US dollar reached the lowest level since February 19 against a 10-currency basket after US lawmakers yesterday agreed to raise the government’s borrowing limit, averting a potential debt default. Impacted by the fall in the dollar, the cocoa price for delivery in December on ICE Futures US in New York had risen 0.44 percent to stand at $2,759 a metric tonne as of 13:47 BST. Earlier today, the contract reached $2,771 a metric tonne, the highest for a most-active contract since September 19, 2011.
Cocoa traded in British pounds slid as the currency advanced as much as 0.9 percent against the dollar — the most in almost a month — after data showed that UK retail sales last month climbed more than economists had projected. Cocoa for delivery in December on NYSE Liffe today slid as much as 0.2 percent to £1,772 a tonne.
As of 13:49 BST, the raw sugar price for delivery in March had fallen 0.16 percent to $0.1898 a pound in New York, while refined, or white sugar for delivery in December slipped 0.1 percent to $506.20 a tonne in London.
As of the same time, Arabica coffee for delivery in December was 0.13 percent lower at $1.1570 a pound on ICE. The Robusta coffee price for delivery in January on NYSE Liffe was $1,637 a tonne, 0.7 percent down on the day.
**Corn climbs on China buying**
The corn price today rose on speculation China has been buying American supplies of the grain at a time when investors lacked fresh data on export sales because of the partial US government shutdown.
As Bloomberg reported, Shanghai JC Intelligence Co. today wrote on its website that China has bought about 20 cargoes of US corn this month. US supplies were now $30 to $35 a metric tonne cheaper than Chinese corn, which may explain buying interest, Paul Georgy, president of Allendale Inc., wrote in a market comment today.
Corn for delivery in December on the Chicago Board of Trade (CBOT) today climbed as much as 0.6 percent to $4.4525 a bushel. The soybean price for delivery in November had gained 0.41 percent to trade at $12.8175 a bushel as of 14:10 BST.
!m[Corn advances on speculation China is buying cheaper US supplies](/uploads/story/6150/thumbs/pic1_inline.jpg)
Elsewhere on the CBOT, the wheat price today rose on concerns South American supplies might decline due to unfavourable weather conditions in key producing countries. Cold weather may harm crops in Argentina, while excess rain delays harvesting in Brazil. After retreating for two sessions, the contract for December delivery had gained 0.84 percent to trade at $6.8725 a bushel in Chicago as of 14:13 BST. Milling wheat for delivery in November on NYSE Liffe in Paris added 0.3 percent to €198.75 a tonne.
Among other agricultural commodities, rubber rallied to a three-week high as the deal to raise the US borrowing limit eased concerns the world’s largest economy may default on its debt. The rubber price for March delivery on Tokyo Commodity Exchange (TOCOM) gained as much as 2.3 percent to 276 yen a kilogramme ($2,795 a metric tonne), the highest since September 27.
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