NEW YORK/LONDON: Arabica coffee futures on ICE rose for the first time in eight sessions on Wednesday, as fund selling paused after prices dropped to a 5-1/2-month low and monthly data showed exports from the world's biggest producer Brazil fell again.
New York cocoa rebounded from a 3-1/2-month low as the British pound firmed against the US dollar.
COFFEE
March arabica coffee settled up 1.65 cent, or 1.4 percent, at $1.201 per lb, up from Tuesday's 5-1/2 month low of $1.183.
Total open interest surged by nearly 24,000 lots in the past five sessions to 214,892 contracts by Tuesday.
The market consolidated after reaching technically oversold levels on Tuesday, and as funds covered short positions, dealers said.
Also supportive was data showing November exports from Brazil fell year-over-year.
January robusta coffee settled up $24, or 1.42 percent, at $1,712 per tonne, after pushing up to $1,726.
Prices rebounded above the prior session's 1-1/2-year low with focus on top grower Vietnam, where harvesting is underway and dealers expect good yields.
The global coffee market could see a surplus of 4.1 million 60 kg bags in 2018/19 as production in top growers Brazil and Vietnam rebounds, Rabobank said in its quarterly report.
COCOA
March London cocoa settled up 10 pounds, or 0.7 percent, at 1,414 pounds per tonne.
A total of 14,980 tonnes of cocoa has been tendered against the December cocoa contract that expired on Tuesday, exchange data showed on Wednesday, with the bulk from Cameroon.
March New York cocoa settled up $21, or 1.1 percent, at $1,888 per tonne, after falling to $1,852, the lowest since Aug. 23.
SUGAR
March raw sugar settled up 0.08 cent, or 0.6 percent, at 13.85 cents per lb.
The rise came after falling for the prior six sessions, pushing prices into technically oversold territory and inspiring speculative short-covering.
The move pushed the March contract's premium over May <SBH8-K8> to a 0.16-cent premium, the highest since May. Dealers said this signaled potentially tighter nearby deliverable supplies.
"This may be suggesting that the trade believe supplies may be tighter than expected out of Brazil early next harvest... as producers concentrate on ethanol production," Nick Penney, senior trader at Sucden Financial, said in a note.
Brazilian senators passed on Tuesday a bill proposing sharp increases in the use of biofuels such as ethanol and biodiesel in the country in coming years.
March white sugar settled up $2, or 0.6 percent, at $363.90 per tonne.
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