LONDON: Raw sugar futures climbed on Thursday in a chart-based rebound from the 2017 low touched the previous day, while London cocoa weakened on the back of technical signals.
SUGAR
May raw sugar rose 0.19 cents, or 1.03 percent, to 18.59 cents a lb by 1456 GMT.
The contract dipped to a low of 18.14 cents the previous day, the weakest for the front month since Dec. 27, though chart-based buying helped the market recover before the close.
Dealers said the firmer close spurred fresh industry buying and short-covering on Thursday morning.
Futures could encounter key resistance on the way up, with Sucden Financial Research noting that technicals remain fragile.
"Momentum is still firmly on the downside with the indicators in negative territory," it said in a market update. "Continued lack of appetite for prices could see contracts retreat to 18.00 (cents), where we saw buying appetite."
China cut its forecast for 2016/17 sugar output by 200,000 tonnes from last month's estimate to 9.7 million tonnes, leading to a bigger than expected deficit.
A US government weather forecaster said on Thursday that it sees increasing chances of an El Nino weather pattern this year, with indications it could arrive as soon as the spring.
May white sugar slipped by $0.70, or 0.13 percent, to $520 a tonne. The front month dipped to a low of $515 on Wednesday, its weakest since Dec. 29.
COCOA
May London cocoa was down 11 pounds, or 0.7 percent, at 1,570 pounds a tonne, pressured by a firmer pound.
Dealers said that technical signals were also pressuring, with London sell-stops triggered as prices slipped below key resistance levels.
May New York cocoa was down $6, or 0.31 percent, at $1,906 a tonne. It hit a 9-1/2 year low last week on worries about oversupply and strong production in top grower Ivory Coast.
COFFEE
May arabica gained 0.55 cents, or 0.39 percent, to $1.423 per lb on technical support.
Dealers said that the market would need a strong close above the short-term moving average to spur more gains.
Fundamentals remain bearish, however, with plentiful global supplies.
Colombia produced 14.23 million bags last year, its highest in 23 years, and the head of its coffee growers' federation said output could reach 14.5 million bags this year.
May robusta was unchanged at $2,189 a tonne.
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