LONDON: Robusta coffee rose on Thursday as speculative selling pressure eased off and Brazil moved closer to allowing imports, while cocoa climbed higher after a sharp rebound a day earlier.
COFFEE
Robusta coffee futures were higher, with the May contract up $13, or 0.61 percent, at $2,161 per tonne by 1217 GMT.
Dealers said the market was supported by positive technicals, which encouraged speculators who were selling in large volumes to step back.
"They have been liquidating from a very big net long position," one dealer said. "And with yesterday's positive close, that sale signal has been turned off."
Robusta has dropped from 5-1/2 year highs, as speculators began reversing record long positions built up on expectations of a second poor crop in Brazil and a decline in production in Vietnam.
The market has been monitoring the situation in Brazil, where a Foreign Trade Chamber committee on Wednesday approved the authorisation to open robusta coffee imports at near zero tariff.
If ratified next week, it will be the first time Brazil imports robusta in decades, although dealers said the market remains cautious ahead of a final decision.
May arabica coffee also rose 1.15 cents, or 0.78 percent, to $1.481 per lb, with dealers noting supportive factors including technicals and a stronger real.
COCOA
New York May cocoa climbed $19, or 0.96 percent, to$2,006 a tonne, extending gains after surging 4.3 percent a day earlier.
The contract touched its lowest since October 2008 this week, on selling related to a wave of defaults in top producer Ivory Coast.
Dealers said the contract had inched into oversold territory, triggering a wave of short-covering.
May London cocoa was up 8 pounds, or 0.50 percent, at 1,622 pounds a tonne, extending gains after surging 3.9 percent in the previous session.
SUGAR
Raw sugar eased but remained in its recent trading range. March raw sugar futures fell 0.13 cents, or 0.63 percent, to 20.35 cents per lb.
May white sugar fell $2.70, or 0.49 percent, to$550.80 a tonne, but remained near the week's high of 556.70 a tonne.
The whites market has been supported this week by growing expectations India will import white sugar later this year as well as fresh demand from Myanmar, seen as a route into China.
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