LONDON: Arabica coffee futures slipped on Tuesday from their highest in nearly 3-1/2 months as technical resistance halted a short-covering advance, while a weaker dollar helped New York cocoa rise to a 2-1/2-month peak.
COFFEE
September arabica was down 1.40 cents, or 1.01 percent, at $1.3785 per lb by 1357 GMT, after hitting $1.3955, its highest since April 20.
Dealers said short-covering by funds had run out of steam, while prices had stumbled on technical resistance around $1.40.
"The upside is going to be limited," said one dealer. "There isn't a supply issue at the moment. And the shorts don't have a great deal left to cover."
September robusta coffee was down $4, or 0.19 percent, at $2,119 per tonne.
A total of 7,687 lots were delivered against the July contract that expired on Monday, exchange data showed.
The same broker, Macquarie Bank Ltd, took delivery of 7,485 lots, just shy of the maximum it is allowed to purchase in one delivery period.
Dealers said this added to speculation that a trade house is attempting to gain a strategic grip on certified stocks.
COCOA
September New York cocoa was up $20, or 0.97 percent, at $2,080 a tonne, after climbing to $2,088, the highest for the front month since May 18.
September London cocoa rose by 12 pounds, or 0.75 percent, to 1,602 pounds a tonne, tracking gains in New York.
Dealers pointed to broadly upbeat commodity markets and a weaker dollar. A more positive technical structure, meanwhile, spurred chart-driven short-covering.
Expectations for lower global output next season, coupled with a pickup in demand, have also improved sentiment and wet weather in top grower Ivory Coast was adding support.
"There are some suspicions that the recent rainfall is going to be a bit of a problem for the new-crop development," said one dealer.
SUGAR
October raw sugar was up 0.12 cent, or 0.80 percent, at 15.03 cents per lb, after hitting 15.07 cents, its highest since May 31.
Prices rallied 3.8 percent in the previous session following a tax change decision in Brazil that will make ethanol more competitive.
The market gained further on Tuesday after climbing above the key 15 cent resistance level. However, gains were capped by an uptick in producer hedging, dealers said.
October white sugar rose $2.20, or 0.55 percent, to $404.50 a tonne.
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