LONDON: Cocoa futures on ICE climbed on Friday as supportive technicals sparked fresh buying and temporarily overshadowed worries about oversupply in the global market.
COCOA
July New York cocoa rose $29, or 1.6 percent, to $1,868 a tonne by 1354 GMT, reversing course after earlier slipping to $1,805.
July London cocoa was also up 21 pounds, or 1.5 percent, at 1,461 pounds a tonne. It had fallen to 1,408 pounds in earlier trade.
Prices recovered after they managed to climb above the 10-day moving average, which lent technical support and triggered some fresh buying.
This extended gains from the previous session, when London rallied 3.6 percent and New York gained 3.3 percent, mostly on similar chart-based buying.
Dealers said support was fragile, amid a broadly bearish fundamental picture and expectations for a global surplus.
"Selling died down and there's been some short covering," said one dealer. "But fundamentally nothing has changed, and wide-ranging swings and thin volumes are contributing to choppy conditions."
Both markets were also supported by firmer sentiment in broader commodities, with the 19-market Thomson Reuters CoreCommodity Index climbing off a nine-month low touched a day earlier.
SUGAR
Raw sugar also rose, with July up 0.13 cents, or 0.9 percent, at 15.50 cents per lb, after hitting a high of 15.68.
August white sugar was up $2.10, or 0.5 percent, at $444.60 a tonne, reversing course after hitting a session low of $441.70, the weakest for the front-month since April 20 2016.
Dealers noted trade was chart-driven as technicals firmed, although volumes were thin and worries about ample sugar supplies limited gains.
"Fundamentals are doing very little to add support," said Darren Stetzel, analyst at INTL FCStone. "More favourable weather in Brazil is expected to bolster the country's production further and add to the global surplus in the year ahead."
The market is set for a surplus of 4.72 million tonnes, raw value, in the 2017/18 season, fuelled by a sharp rise in production, Australia-based analysts Green Pool forecast on Friday.
COFFEE
July arabica coffee fell 0.10 cents, or 0.1 percent, to $1.3485 per lb, after shedding 1.8 percent in the previous session.
Robusta futures were marginally higher, with July up $3, or 0.2 percent, at $1,995 a tonne.
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