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SOFTS-Cocoa eases as Ouattara makes gains in I.Coast

Published 04/01/2011, 07:29 AM
Updated 04/01/2011, 07:32 AM
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* Sugar market focused on ample Brazilian crop outlook

* Limited availability underpins coffee markets

* Cocoa consolidates after steep fall

(Adds trade comment, bylines, updates prices)

By David Brough and Nigel Hunt

LONDON, April 1 (Reuters) - ICE cocoa futures were slightly lower on Friday as forces loyal to Ivory Coast presidential claimant Alassane Ouattara made further gains, raising the prospect that cocoa could soon start to flow again from the world's top producer.

Raw sugar futures on ICE were steady as the market remained stuck within a trading band, while arabica coffee prices firmed with the market continuing to be supported by a tight supply outlook.

In the cocoa market, futures prices consolidated after a slide of around 10 percent this week as forces loyal to Ivory Coast's presidential claimant Alassane Ouattara made gains in fighting against incumbent Laurent Gbagbo.

Ouattara's forces battled loyalists of his rival Gbagbo near his Abidjan residence on Friday, having seized control of state television overnight.

"Now it's a wait-and-see situation," said Keith Flury, soft commodities analyst with Rabobank in London.

"We've seen a lot of liquidation already. People in the market are now consolidating."

ICE May cocoa fell $25 or 0.9 percent to $2,927 a tonne by 1147 GMT.

Prices on Liffe were also slightly down with July off 18 pounds or 0.9 percent at 1,898 pounds a tonne in modest volume of 3,460 lots.

FOCUS ON BRAZILIAN SUGAR HARVEST

ICE raw sugar futures remained in a range, weighed by expectations of a big harvest in the main centre-south growing region of Brazil, as well as prospects for number 2 producer India to export more sugar.

"Now the range is around 26.00-28.20 cents a lb," a veteran London sugar futures dealer said.

"If the market broke lower, you would have to go through 25.47 cents a lb before people get nervous. If we broke below 25.00 cents, some of the funds would throw the towel in."

ICE May raw sugar futures were up 0.02 cent to 27.13 cents a lb at 1152 GMT.

New York sugar is technically neutral as a consolidation between 26.37 cents and 28.20 cents per lb continues, Reuters market analyst Wang Tao said.

London May white sugar rose 70 cents or 0.1 percent to $712.40 per tonne in low volume of 881 lots.

Coffee futures were little changed in slim volumes, against a backdrop of limited availability.

Coffee supplies are expected to remain tight for the rest of the year while prices should remain at high levels, International Coffee Organization Executive Director Jose Sette said on Thursday.

ICE May arabica coffee rose 0.95 cents or 0.4 percent to $2.6510 per lb at 1155 GMT, while July climbed 0.85 cents or 0.3 percent to $2.6760.

New York coffee may end its minor rebound below $2.7070 and fall back to the Tuesday's low at $2.6030 per lb, based on its wave pattern and a Fibonacci retracement analysis, Reuters market analyst Wang Tao said.

London July robustas were up $2 or 0.1 percent at $2,420 per tonne in slim volume of 825 lots. (Reporting by David Brough and Nigel Hunt; Editing by William Hardy)

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