Cocoa prices fall on concern demand may slow
Sunday, 30 May 2010
NEW YORK, May 29 (Bloomberg): Cocoa prices fell on concern that Europe's debt crisis and weaker-than-estimated data on US personal spending may hinder a recovery in demand. Coffee also dropped.
Consumer spending unexpectedly stalled in April as Americans used growing wages to rebuild savings, Commerce Department data show. European policy makers have struggled to control the debt crisis in Portugal, Italy, Greece and Spain. Together, Europe and the US account for 70 per cent of world cocoa consumption.
"The big question mark is what will happen to demand," said Donna Heidkamp, a trading adviser at RJO Futures in Chicago. Prices face "key resistance" at $3,000 a metric ton, she said.
Cocoa for July delivery fell $8, or 0.3 per cent, to $2,965 a ton on ICE Futures US in New York. The most-active contract climbed 2.4 per cent this week, following a 3 per cent gain last week.
Cocoa may reach $3,062 in a few weeks should prices top $3,000, Heidkamp said. The commodity declined 8.5 per cent this month and is down 9.9 per cent in 2010.
On London's Liffe exchange, cocoa futures for July delivery slipped 0.6 per cent to 2,420 pounds ($3,504) a ton. Yesterday, the contract jumped to 2,451 pounds, the highest price since at least 1989.
Arabica-coffee futures for July delivery fell 0.5 cent, or 0.4 per cent, to $1.3425 a pound in New York. The most-active contract gained 1.4 per cent this week, narrowing this month's loss to 0.8 per cent. In London, robusta-coffee futures for July delivery gained $2 to $1,338 a ton.
Consumer spending unexpectedly stalled in April as Americans used growing wages to rebuild savings, Commerce Department data show. European policy makers have struggled to control the debt crisis in Portugal, Italy, Greece and Spain. Together, Europe and the US account for 70 per cent of world cocoa consumption.
"The big question mark is what will happen to demand," said Donna Heidkamp, a trading adviser at RJO Futures in Chicago. Prices face "key resistance" at $3,000 a metric ton, she said.
Cocoa for July delivery fell $8, or 0.3 per cent, to $2,965 a ton on ICE Futures US in New York. The most-active contract climbed 2.4 per cent this week, following a 3 per cent gain last week.
Cocoa may reach $3,062 in a few weeks should prices top $3,000, Heidkamp said. The commodity declined 8.5 per cent this month and is down 9.9 per cent in 2010.
On London's Liffe exchange, cocoa futures for July delivery slipped 0.6 per cent to 2,420 pounds ($3,504) a ton. Yesterday, the contract jumped to 2,451 pounds, the highest price since at least 1989.
Arabica-coffee futures for July delivery fell 0.5 cent, or 0.4 per cent, to $1.3425 a pound in New York. The most-active contract gained 1.4 per cent this week, narrowing this month's loss to 0.8 per cent. In London, robusta-coffee futures for July delivery gained $2 to $1,338 a ton.