LONDON: Robusta coffee futures rose on Wednesday, lifted by improving technicals and signs of underlying demand, while white sugar climbed as focus shifted back to tighter nearby supplies ahead of a contract expiry on Friday.
COFFEE
September robusta coffee was up $14, or 0.68 percent, at $2,086 per tonne by 1148 GMT, as chart signals strengthened after four straight sessions of losses.
Prices have been weighed by technical selling, although dealers are closely watching appetite to take delivery on the July contract amid expectations for tightening physical supplies over the next few months.
"The drawdowns (in stocks) are real and they will likely continue," said one dealer.
"But, on the other hand, the price and the spread has encouraged coffee that we didn't think was there to come out of origin. It's still a tight balance sheet but is it as tight as it was? Probably not and that's why the market has come off the board a little bit."
September arabica coffee fell 0.15 cent, or 0.12 percent, to $1.2675 per lb.
"Speculators have aggressively sold the Arabica market, which in our opinion is somewhat detached from the fundamentals, which appear more constructive," ING said in a market note.
Coffee supplies held by private market players in Brazil at the end of the 2016/17 crop year in March were seen at 9.86 million 60-kg bags, down 27 percent from a year earlier, Conab said late on Wednesday.
SUGAR
August white sugar climbed $3.70, or 0.92 percent, to $405.90 a tonne, as focus shifted back on tighter supplies ahead of an expiry on Friday.
October raw sugar was up 0.10 cents, or 0.74 percent, to 13.54 cents per lb.
The market was awaiting output data for centre-south Brazil on Wednesday, with a S&P Global Platts survey forecasting a cane crush of 46.7 million tonnes in the second half of June, up 18 percent from the first half of June but down 3 percent from last year.
The mix was seen favouring sugar, however, with output up 26 percent from the first half of June and 7 percent on the year. Ethanol was seen at 1.84 billion litres, rising 22 percent from the first half of June but down 6 percent on the year.
COCOA
September New York cocoa rose $4, or 0.22 percent, to $1,821 a tonne.
September London cocoa fell 1 pound, or 0.07 percent, to 1,451 pounds a tonne.
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