LONDON: Cocoa futures firmed on Thursday, recovering some ground a day after their biggest one-day rout since 2011, while raw sugar fell as political uncertainty and better weather in top grower Brazil weighed on sentiment.
COCOA
July New York cocoa gained $18, or 0.95 percent, to$1,912 a tonne by 1423 GMT, above lows of $1,882 touched in the previous session.
July London cocoa gained 15 pounds, or 1.05 percent, to 1,483 pounds a tonne, partly lifted by a weaker pound.
Both markets tumbled on Wednesday, with London shedding 5.53 percent and New York falling 6.28 percent on heavy selling by speculators.
Prices recovered some ground on Thursday, with dealers pointing to light short-covering, but volumes were low and the market remained broadly subdued, they said.
Participants said the fundamental backdrop also limited gains, noting cocoa arrivals in the Ivory Coast were still well ahead of last year and Ghana's production outlook is adding to expectations for ample supplies.
"The demand side doesn't look good and there is a massive oversupply," said Edward George, head of group research at Pan-African lender Ecobank. "So for prices, it's very hard for them to climb up."
Cocoa farmers in Ivory Coast are selling beans at below the government guaranteed minimum price as a global price decline squeezes revenues for buyers and exporters, farmers and buyers told Reuters.
SUGAR
July raw sugar eased 0.12 cent, or 0.77 percent, to 15.55 cents per lb, after falling to a session low of 15.44.
Prices fell over 3 percent a day earlier, before recovering some ground to close 1.26 percent lower.
The weak close weighed on technicals on Thursday, while further signs of improving weather in top grower Brazil undermined the potential for production disruptions.
"We continue to trade sideways around the lows of the year and funds are seemingly still looking to sell," said Sucden Financial's Tom Kujawa, adding that speculators have "plenty of room" to sell more.
The market was also monitoring Brazil, after protesters demanding the resignation of President Michel Temer set fire to a ministry building on Wednesday, prompting the scandal-hit leader to order the army onto the streets.
August white sugar also fell $3 or 0.66 percent, to $448.40 a tonne.
COFFEE
July robusta coffee slipped $5, or 0.26 percent, to $1,900 a tonne.
July arabica fell 0.35 cents, or 0.27 percent, to $1.282 per lb.
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