LONDON: Arabica coffee futures on ICE rose to a three-week high on Tuesday boosted largely by technically-driven buying, while raw sugar prices also advanced.
COFFEE
September arabica coffee was up 2.95 cents, or 2.9pc, to $1.0595 per lb at 1417 GMT, after rising to a peak of $1.0610, its highest since June 5.
The contract rose 2.3pc on Monday.
"We've seen a bit of spec buying. We've started to run into some origin selling but it is has not been enough to put the brakes on too heavily yet," one dealer said.
"I think it (the rally) is triggered by technicals."
Dealers said industry buyers were keeping on the sidelines and supplies remained ample.
September robusta coffee was up $32, or 2.25pc, at $1,455 a tonne.
SUGAR
July raw sugar was up 0.13 cents, or 1.1pc, at 12.40 cents per lb.
Dealers said the market's main focus remained on the expiry of the July contract later this week, with the potential for a significant tonnage to be tendered.
A weak start to monsoon season in India has given some support to prices.
"Concerns may be arising from the very hot dry weather seen before the monsoons began and by the late arrival of the rains which are running at almost 40pc below the long-term average," Sucden Financial senior trader Nick Penney said.
August white sugar rose $2.60, or 0.8pc, to $325.60 per tonne.
COCOA
September New York cocoa rose $3, or 0.1pc, to $2,490 per tonne.
Dealers continued to keep a close watch on the weather in top producer Ivory Coast, where dryness was a concern.
Unseasonably dry weather across Ivory Coast's cocoa regions last week could weaken the next main crop if rainfall does not increase in July, farmers said on Monday.
September London cocoa was up 4 pounds, or 0.2pc, at 1,836 pounds a tonne.
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