NEW YORK/LONDON: Robusta coffee futures on ICE rose to a four-week high and the nearby premium surged to a contract high on Thursday as rain in top-grower Vietnam looked set to delay the harvest.
New York cocoa futures rallied to a 6-1/2-month high ahead of third-quarter grind data for North America.
COFFEE
November robusta coffee settled up $20, or 1.4 percent, at $2,028 per tonne, after peaking at $2,035, a four-week high.
The November contract's premium over January rose to a contract high at $61.
Dealers said shipment delays from Vietnam heightened concern about tight nearby supplies.
"The more days it rains the more shipments get delayed so there is a time squeeze," one London dealer said.
December arabica coffee settled up 2.55 cent, or 2.1 percent, at $1.2685 per lb.
Total arabica open interest rose for the eighth straight session to 231,461 lots on Wednesday, ICE data showed.
"Market has priced a good crop, but there is a lot of time ahead and uncertainty. The market got very short after rains and flowering (in Brazil)," said Rodrigo Costa, director of trading for Comexim USA.
Dealers pointed to short-covering and chart-based buy signals after the December contract found support at $1.23 the prior two sessions.
COCOA
December New York cocoa settled up $78, or 3.8 percent, at $2,145 per tonne after surging in heavy volume to $2,152, the highest for the front month since March 28.
Dealers said December's <CCZ7-H8> return to a $15 premium to March from a $4 discount prompted short covering by speculators.
"I think people are looking for positive grind data for North America and Asia and that may have pushed the market higher," one dealer said, adding buy-stops were triggered as the market broke through resistance at recent highs.
Traders expected North America's third-quarter grind to show a year-on-year rise of 2 to 3 percent, which would take it to a three-year high. Grindings in Asia, due for release early Friday, were seen up 8 to 10 percent.
December London cocoa settled up 36 pounds, or 2.3 percent, at 1,596 pounds per tonne.
SUGAR
March raw sugar settled up 0.05 cent, or 0.4 percent, at 14.13 cents per lb.
Dealers said the market was underpinned by the prospect of an early end to the harvest in top producer Brazil.
December white sugar settled up $1.50, or 0.4 percent, at $371.80 per tonne.
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