LONDON: Cocoa prices fell to their lowest levels in more than two weeks on Friday before largely recouping losses while sugar regained some ground after a steep fall in the previous session.
COCOA
March New York cocoa was down $4, or 0.2 percent, at $2,051 a tonne by 1218 GMT, having dipped to a low of $2,040, its weakest level since Oct. 17.
Dealers said the market had moved towards the lower end of its recent range but a major move in either direction appears unlikely until there is more clarity on crop prospects in top producer Ivory Coast.
"I'm struggling to see how we can get out of our range," one London dealer said.
The slow early pace of port arrivals in Ivory Coast and concerns about the threat posed by disease, including brown rot and black pod, after October rains have led some to believe the crop could be smaller than initially expected.
"I think the first quarter of next year is going to be interesting both on the crop side and to see whether demand continues to pick up," the dealer said.
Overall supplies, however, remain ample after a huge global surplus in the 2016/17 (October/September) season.
December London cocoa fell 7 pounds, or 0.45 percent, to 1,543 pounds a tonne.
SUGAR
March raw sugar was up 0.11 cents, or 0.8 percent, at 14.34 cents per lb.
Dealers said producer selling had helped to stall the recent run-up in prices, which saw the first position peak at 14.84 cents on Wednesday, its highest since early August.
"The New York March (contract) is now back in the middle of the recent trading range," said Commonwealth Bank of Australia analyst Tobin Gorey.
March white sugar rose by $4, or 1.1 percent, at $378 a tonne.
Front-month December was trading a premium to March of as much as $6 on Friday, up sharply from about $0.80 at Thursday's close.
Dealers said the December contract, which expires on Nov. 15, was underpinned by limited supplies of deliverable sugar.
"The spreading activity suggests that short-covering by funds is in progress, added to trade short-covering," said Nick Penney, senior trader at Sucden Financial.
COFFEE
January robusta coffee was down $20, or 1 percent, at $1,850 a tonne.
Prices fell to their weakest since September 2016 on Wednesday, with supply tightness expected to be alleviated by a large harvest in Vietnam.
December arabica coffee fell 0.35 cents, or 0.3 percent, to $1.26 per lb.
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