LONDON: London cocoa futures on ICE rose to a two-month high on Tuesday buoyed by a weak pound, investor short covering and concerns that dry weather could curtail the April-to-September mid-crop in top grower Ivory Coast.
COCOA
March London cocoa was up 20 pounds, or 1.4 percent, at 1,477 pounds a tonne by 1446 GMT after peaking at a two-month high of 1,481 pounds.
Dealers said the market direction may hinge on the extent to which the current strong pace of port arrivals in Ivory Coast can be maintained.
Cocoa prices should rise by the end of the year, recovering some ground after two consecutive annual declines, a Reuters survey of nine traders and analysts showed.
March New York cocoa rose $6, or 0.3 percent, to $2,051 a tonne.
SUGAR
March raw sugar was up 0.02 cent, or 0.1 percent, at 13.92 cents per lb with the market consolidating after the prior session's sharp gains.
Dealers said the run-up had been largely fuelled by a bout of investor short covering but a major industry conference in Dubai this week had reinforced concerns about excess supplies.
"The tone coming out of the Dubai Sugar conference as a result of various presentations made at it continues to be bearish in the long term even if some feel the bottom has been reached in the short term," said Nick Penney, senior trader with Sucden Financial.
India is likely to continue exporting sugar in the 2018-2019 season, Abinash Verma, director general of the Indian Sugar Mills Association, said on Tuesday.
March white sugar fell $1.30, or 0.4 percent, to $359.90 per tonne.
COFFEE
March arabica coffee rose 1.90 cents, or 1.6 percent, to $1.2170 per lb.
A Reuters poll on Monday forecast slightly higher coffee prices by the end of the year as countries restock inventories.
March robusta coffee was up $19, or 1.1 percent, at $1,799 a tonne.
Coffee stocks held in European ports fell 5.3 percent in December, figures from the European Coffee Federation (ECF) showed on Tuesday.
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