LONDON: Cocoa futures on ICE rose on Friday, lifted by light chart-inspired buying against a backdrop of better demand, while raw sugar slipped as the focus shifted back to ample global supplies.
COCOA
December London cocoa was up 8 pounds, or 0.5 percent, at 1,500 pounds a tonne by 1342 GMT, partly helped by a weaker pound.
December New York cocoa rose $8, or 0.4 percent, to $2,029 a tonne, having hit a session high of $2,047 in earlier trade.
Dealers pointed to light fund buying amid signs of better demand from chocolate makers and expectations for a smaller crop in the Ivory Coast in the coming season.
"It's been such a bumper crop, the trees will have to rest at some point," said one dealer. "And demand as well is picking up. We're seeing North American consumption going up a bit so that's helping the New York market."
The dollar, which slumped on simmering tensions over North Korea, also lent some support.
The December New York contract was at a slight premium to the March position, with dealers pointing to potential nearby tightness due to recent rejections of some Ecuadorean cocoa shipments containing itch grass.
Ivory Coast and Ghana, the world's top cocoa producers, plan to create a buffer stock of beans with the aim of exerting more influence over world prices, a senior Ivorian government official told Reuters on Thursday.
SUGAR
October raw sugar eased 0.04 cents, or 0.3 percent, to 14.01 cents per lb as hedging by Brazilian producers and a backdrop of ample global supplies weighed, dealers said.
Market focus was on the October expiry next week, with dealers noting appetite for delivery seemed lacklustre.
"The deepening discount (for October over March) this late is not a good sign because it suggests more supply is emerging," said Tobin Gorey, director of agriculture strategy at the Commonwealth Bank of Australia.
December white sugar was up $0.60, or 0.2 percent, at $370.70 a tonne.
Prices were slightly supported by a better technical picture, after the market climbed over the 10-day moving average.
However, dealers noted buyers were unwilling to chase the market above the recent trading range, ahead of a boost in production from the European Union once the bloc liberalises its sugar regime in October.
COFFEE
December arabica coffee was up 0.45 cents, or 0.3 percent, at $1.39 per lb.
November robusta coffee was down $2, or 0.1 percent, at $2,010 a tonne.
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