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SOFTS-Cocoa hits 1-week high, sugar and coffee edge up
June 5, 2012 / 3:42 PM / 5 years ago

SOFTS-Cocoa hits 1-week high, sugar and coffee edge up

 * Cocoa surges partly on talk of disease in Nigeria
 * Sugar and coffee modestly higher
 * Macro factors to keep softs on defensive
 * British holiday thins soft commodities business
 By Rene Pastor	
 NEW YORK, June 5 (Reuters) - Cocoa futures hit a one-week
high o n Tuesday amid talk that a crop disease may have struck a
leading producer of the commodity, while raw sugar and arabica
coffee edged up as business remained subdued by a holiday in
 London financial markets are shut as the UK celebrates Queen
Elizabeth's 60th year on the throne. The markets there reopen o n
W ednesday.	
 Investors will continue to suffer from jangled nerves due to
the euro zone debt crisis and the prospect of weak growth in the
world's economic drivers -- the United States and China.	
 "The global macro situation will keep investors a little
skittish," said Sterling Smith, vice-president of commodity
research at Citibank's Institutional Client Group in Chicago. 	
 July cocoa on ICE Futures U.S. rose $45, or 2.15
percent, to trade at $2,139 per tonne by 11:14 a.m. EDT (1514
GMT). It hit a session top at $2,148, the market's highest level
since May 29, Thomson Reuters data showed.    	
 Smith said the market could have received a boost from talk
that No. 4 producer Nigeria may be suffering from cocoa canker.
The disease destroys the pods where cocoa beans form and can
seriously reduce production in affected countries.	
 "This was enough to get cocoa turned around. That could
tighten supplies a little bit," Smith said.     	
 Traders said cocoa also ran into a short-covering spurt that
hoisted spot July above $2,100.	
 Raw sugar and arabica coffee futures edged up in largely
quiet business.	
 The July raw sugar contract on ICE gained 0.16 cent
to trade at 19.06 cents per lb, with the day's peak at 19.19 and
the session low at 18.90 cents. 	
 Demand from Muslim countries booking orders before the holy
fasting month of Ramadan next month buoyed the sweetener,
traders said.	
 "Ramadan demand should keep us above 19 cents," one said.	
 Arabica coffee was also slightly steadier as the market
extended a recovery after easing to near a two-year low at
$1.5465 per lb in the previous session.	
 The July arabica coffee contract on ICE added 0.35
cent to trade at $1.588 per lb, moving from $1.5765 to $1.5935.	
 (Editing by Dale Hudson)	

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