LONDON: London cocoa futures on ICE rose in Monday, lifted to their highest in more than two months by a weaker British pound and a bout of short-covering.
COCOA
September London cocoa was up 30 pounds, or 1.86 percent, at 1,640 pounds a tonne by 1404 GMT, having touched 1,658 pounds, the highest for the second position since April 7.
Dealers said prices were supported by the pound, which fell further on Monday amid worries about the impact of political uncertainty on the British economy ahead of the start of talks on leaving the European Union.
The currency boost lifted prices above technical resistance levels, spurring speculative short-covering in heavy volume, dealers said.
"That has given it that little boost to take it over the edge," one dealer said. "Currency got it moving and short-covering and technically-inspired buying has taken the market up to levels we haven't seen for a couple of weeks now."
September New York cocoa also rose. It was up $29, or 1.42 percent, at $2,067 a tonne, supported by gains in London and positive chart signals.
Cocoa arrivals at ports in top grower Ivory Coast since the start of the season on Oct. 1 had reached about 1,652,000 tonnes by June 11, exporters estimated on Monday, up 20 percent from the same period of the previous season.
SUGAR
July raw sugar rose 0.08 cents, or 0.56 percent, to 14.35 cents per lb.
Prices were supported by cold weather in Brazil, the world's top sugar producer, amid increasing concern about the possibility of damage to cane crops.
"Frost in centre-south Brazil wasn't a major deal over the weekend but signals that risks remain from a fundamental perspective," analyst Green Pool said in a weekly report.
Technicals were adding support, after the market managed to climb above the short-term moving average in early trade and dealers noted prices were testing resistance around 14.50 cents.
August white sugar gained $0.40, or 0.1 percent, to $417.30 a tonne.
COFFEE
July arabica coffee rose by 0.75 cents, or 0.59 percent, to $1.2730 per lb, also boosted by the weather outlook in Brazil, the world's largest producer of arabica coffee.
"The cold snap looks as if it's going further and further north towards those coffee areas," one dealer said. "So it's not quite frost territory yet for coffee-growing areas but it certainly looking more and more of a possibility."
July robusta gained $20, or 1 percent, to $2,022 a tonne after hitting $2,028, its highest since April 21.
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