LONDON: Arabica coffee futures climbed on Wednesday to their highest in more than three weeks on short-covering, while raw sugar slumped along with broader commodity markets.
COFFEE
September arabica coffee were up 1.55 cent, or 1.21 percent, to $1.2925 per lb by 1436 GMT, the highest for the second position since June 13.
Dealers pegged the gains on short-covering by speculators, who were inspired by more supportive chart signals.
"It's technical buying really," said one dealer. "It seems like mostly short-covering by specs. The funds went short quite heavy last week."
Prices have been pressured by a large speculative net short position, although the possibility of a global arabica deficit in the 2017-18 season has recently lent some support.
September robusta coffee rose $8, or 0.37 percent, to $2,157 a tonne.
SUGAR
October raw sugar fell 0.35 cents, or 2.51 percent, to 13.57 cents per lb, partly pressured by weakening charts after a failed attempt to climb above key resistance levels.
A stronger dollar and broader weakness across the commodities basket, led by a stumble in oil prices, also weighed.
Dealers said last week's rally, which lifted prices off a low of 12.74 cents, has run out of steam, with focus back on an expected surplus in the 2017/18 season.
"I don't think there has been any change in the fundamental picture," one dealer said.
August white sugar fell $3.70, or 0.90 percent, to $408.40 a tonne, tracking losses in raw sugar.
The premium over the October position hit a peak of $27.50 on Wednesday, the widest on a continuous basis in nearly five years, with dealers pointing to potentially tighter supplies ahead of the European Union's sugar regime change in October.
COCOA
September New York cocoa fell $18, or 0.92 percent, to $1,940 a tonne.
The market was shut for a US public holiday on Tuesday and dealers said prices sought to "catch-up" with London, which was dragged lower by data showing sharply higher port arrivals in major producer Ivory Coast.
"In the big picture, it just goes to reinforce what a big crop we had and how much cocoa has come through," one dealer said. "But it probably tells us to be a little bit more concerned down the road with the next crop."
September London cocoa rose 1 pound, or 0.07 percent, to 1,529 pounds a tonne.
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