London cocoa futures rose on Friday, pulling away from seven-week lows as they were helped by a weaker British pound and technical trading, while coffee prices hit their highest in two months.
COCOA
May London cocoa was up 24 pounds, or 1.5 percent at 1,613 pounds a tonne by 1230 GMT, partly supported by a weaker British pound.
In the prior session, prices fell to 1,585 pounds a tonne, their lowest since Dec. 11.
Dealers said the market's ability to withstand selling pressure had bolstered the technical outlook, spurring some short covering.
"London cocoa futures held their nerve yesterday after futures failed to break both support and resistance," said Geordie Wilkes, technical analyst at Sucden Financial. "(Prices)could be finding a platform to take back some of the recent losses."
However, focus remained on West Africa, where favourable weather and strong port arrivals suggest world supplies of cocoa should be plentiful in the medium term.
March New York cocoa rose $22, or 1 percent, to $2,190 a tonne, after also setting a seven-week low in the prior session.
COFFEE
March arabica coffee was up 0.25 cents, or 0.2 percent, at $1.0615 per lb.
It earlier touched $1.0700, its highest since Nov. 30, boosted by follow-through buying, dealers said.
Prices rose sharply on Thursday in step with the Brazilian real currency, which jumped to a three-month high on market optimism over pension reforms promised by President Jair Bolsonaro's new government.
A stronger real is supportive because it reduces local returns on dollar-traded commodities like coffee and sugar, discouraging producers from selling their supplies.
March robusta coffee was up $10, or 0.6 percent, at $1,561 a tonne on thin volumes.
Prices earlier hit $1,592 per tonne, their highest since Dec. 3, as speculators tested resistance in thin trade. However, buying waned soon after.
Dealers said trade had slowed as top grower Vietnam readies for the Lunar New Year holiday next week.
SUGAR
March white sugar fell $3.60, or 1.1 percent, to $337.70 a tonne.
March raw sugar slipped 0.05 cents, or 0.4 percent, to 12.68 cents a lb.
Prices gained in the prior session, similarly boosted by the real currency in top grower Brazil.
The world sugar market is on course for a shortfall of 1.36 million tonnes (raw value) in 2019/20, analyst Green Pool said on Friday in its first forecast for the season.
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