LONDON: Cocoa futures rose on Wednesday, boosted by expectations that upcoming fourth quarter grind data will provide further evidence that demand is beginning to pick up.
COCOA
March London cocoa was up 14 pounds, or 1.0 percent, at 1,390 pounds a tonne at 1203 GMT.
"We're heading into the grinds next week. Everyone is quite positive about them," a dealer said, noting Europe's Q4 grind was seen rising by three to five percent, year-on-year, while an increase of at least five percent was seen in Asia and one to two percent in North America.
Europe's fourth quarter grind is scheduled to be released on Monday while North American data is expected to be issued on Jan. 18.
"There is a massive spec short position and they are probably bound to cover a little bit before the grind is released. And plus you've got the shooting in the Ivory Coast, which just tells you that there's still tension, even if it's very localised events," the dealer added.
Soldiers in Ivory Coast's second largest city looted weapons from the base of an elite military unit overnight before setting it on fire, leaders of the faction said on Wednesday.
March New York cocoa rose $27 or 1.4 percent, to $1,926 a tonne.
COFFEE
March robusta coffee was up $5, or 0.3 percent, at $1,729 a tonne. The second month rebounded strongly on Tuesday after slumping to a 1-1/2 year low of $1,672.
"The aggregate volumes of futures improved yesterday betraying appetite for higher prices but we need more strong sessions to confirm the outlook," Sucden Financial technical analyst Geordie Wilkes said in a market note.
March arabica coffee was up 0.70 cents, or 0.6 percent, at $1.2585 per lb.
World coffee output is seen rising to a fresh record in 2017/18 as a recovery in robusta production offsets a decline in the arabica variety, the International Coffee Organization (ICO) said on Tuesday.
SUGAR
March raw sugar rose 0.09 cent, or 0.6 percent, to 14.82 cents per lb with the market regaining some ground after falling earlier in the week.
Dealers said the upside potential may, however, be capped by producer selling above 15 cents.
March white sugar was down $1.70, or 0.4 percent, to $391.30 a tonne.
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