LONDON: Cocoa futures on ICE rose on Tuesday, lifted by light short covering ahead of grind data from Asia and North America due out later this week, while white sugar slipped as chart-based signals weakened.
COCOA
September London cocoa was up 17 pounds, or 1.13 percent, at 1,524 pounds a tonne by 1400 GMT after peaking at 1,534 pounds, a high for the front month since July 6.
Dealers noted speculators had been scaling back large net short positions in both London and New York cocoa on concerns that heavy rains had curbed the next main crop in Ivory Coast and potentially raised quality issues.
Second quarter grind data from Asia on Wednesday and North America on Thursday should provide the focus this week.
"I think Asia could see a significant rise but North America has to be a good positive number to make people think there is a change (in demand trends)," one dealer said.
Some expect the decline in prices over the last 12 months to revive demand.
Asia's first quarter grind rose 19.2 percent, year-on-year, but North America's grind for that period showed a modest 1.15 percent increase.
September New York cocoa was up $18, or 0.94 percent, at $1,928 a tonne.
SUGAR
October white sugar was down $2.90, or 0.74 percent, at $391.40 a tonne, reversing earlier gains.
Technical signals weakened after prices failed to climb above the key $400 resistance level.
"Contracts need to take out 410 in heavy volumes to trigger further gains in the medium term," said Sucden Financial's Geordie Wilkes in a market update.
The white sugar market has been weighed down by expectations for ample supplies later in the year, once the European Union liberalises its regime in October.
October raw sugar was up 0.05 cents, or 0.35 percent, at 14.14 cents per lb.
Dealers said prices were supported by a weaker dollar, with the US currency falling to a 10-month low against a basket of currencies on Tuesday.
The market is rangebound, with support anticipated around 13.50 cents per lb but resistance around this month's high of 14.39 cents.
COFFEE
September arabica coffee rose 0.25 cent, or 0.19 percent, to $1.338 per lb, also supported by the soft dollar.
September robusta coffee was up $1, or 0.05 percent, at $2,127 per tonne.
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