Cocoa Corrects Lower after Rally; Technical Charts Signal Gains for Sugar

Neena Rai

  Cocoa futures fell in Europe Monday morning as the market corrected itself as

buy-stops were triggered after the prior session's rally. By contrast, robusta

coffee and sugar futures edged higher.

  At 1200 GMT, March cocoa futures fell 1.1% to GBP1,720 a metric ton.

  "London cocoa prices came under renewed pressure, trading around the

GBP1,720-a-ton area. Short-term, we expect further consolidation around the

GBP1,720-1750 area, as the cocoa market is looking for some clear direction,"

Myrto Sokou, senior research analyst at Sucden Financial brokerage said.

  The cocoa market's supply fundamentals have improved recently, with

favourable weather conditions in West Africa helping to boost prospects for the

cocoa crop amid buoyant bean arrivals from top grower Ivory Coast, weighing on

prices, said Phillip Futures.

  Sugar futures rose as technical charts signaled the potential for further

gains. Sugar for March delivery increased 0.9% to $168.40 a ton.

  January robusta coffee futures ticked 0.4% higher to $1,517 a ton.