LONDON: Raw sugar futures on ICE rose on Friday, boosted by fund short covering, while New York cocoa fell to its lowest level in more than three weeks.
SUGAR
March raw sugar was up 0.3 cents, or 2.1 percent, at 14.53 cents per lb at 1453 GMT as the market climbed back up towards Wednesday's three-month high of 14.84 cents after the prior session's sharp setback.
Dealers said the market's advance has been fuelled by fund short covering and there was scope for further gains if they continued to buy.
US Commodity Futures Trading Commission data later on Friday is expected to show speculators scaling back a large net short position but it is likely to remain substantial.
March white sugar rose by $7.80, or 2.1 percent, to $381.80 a tonne.
Front-month December was trading a premium to March of as much as $7 on Friday, up sharply from about $0.80 at Thursday's close.
Dealers said the December contract, which expires on Nov. 15, was underpinned by limited supplies of deliverable sugar.
"The spreading activity suggests that short-covering by funds is in progress, added to trade short-covering," said Nick Penney, senior trader at Sucden Financial.
COCOA
March New York cocoa was down $18, or 0.9 percent, at $2,037 a tonne having dipped to a low of $2,032, its weakest level since Oct. 10.
Dealers said the market had moved towards the lower end of its recent range but a major move in either direction appeared unlikely until there is more clarity on crop prospects in top producer Ivory Coast.
"I'm struggling to see how we can get out of our range," one London dealer said.
The slow early pace of port arrivals in Ivory Coast and concerns about the threat posed by disease, including brown rot and black pod, after October rains have led some to believe the crop could be smaller than initially expected.
"I think the first quarter of next year is going to be interesting both on the crop side and to see whether demand continues to pick up," the dealer said.
Overall supplies, however, remain ample after a huge global surplus in the 2016/17 (October/September) season.
December London cocoa fell 7 pounds, or 0.45 percent, to 1,543 pounds a tonne.
COFFEE
January robusta coffee was down $13, or 0.7 percent, at $1,857 a tonne.
Prices fell to their weakest since September 2016 on Wednesday, with supply tightness expected to be alleviated by a large harvest in Vietnam.
December arabica coffee fell 1.25 cents, or 1.0 percent, to $1.2515 per lb.
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