LONDON: Robusta coffee futures rose on Wednesday as industry buying lifted prices off a two-week low touched a day earlier, while energy markets pressured raw sugar and a weaker dollar boosted New York cocoa.
COFFEE
March robusta was up $36, or 2.1 percent, at $1,764 a tonne by 1437 GMT, after rising to a session high of$1,768.
Prices fell to a two-week low in the prior session, pressured by producer selling and a weakening in the arabica coffee market.
However, dealers noted lower prices had drawn strong demand from roasters at Tuesday's close and Wednesday's opening, which had boosted the market.
"There was some Vietnam selling ... but they didn't chase the market down," a dealer said. "And there was very good industry buying."
While there was still significant hedging by producers in top grower Vietnam, dealers noted they were reluctant to sell at lower prices, which was also lending support to the market.
March arabica rose 0.55 cent, or 0.5 percent, to $1.2285 per lb.
Prices dropped on Tuesday, pressured by a decline in the Brazilian real. A weaker real improves local currency returns on dollar-based commodities such as coffee, encouraging producers to sell.
The Brazilian currency had partially recovered on Tuesday, lending support to arabica prices.
Dealers said gains were capped, however, by expectations for ample global supplies in the current season, although speculative short-covering could temporarily add support.
"We expect a record Brazil crop, the question is by how much," the dealer said. "So that's bearish - but at the same time, the funds have a record short position in the market."
SUGAR
March raw sugar fell 0.12 cent, or 0.9 percent, to 13.60 cents per lb.
Short-covering lifted prices to a two-week high on Tuesday after recent data showed funds had built a record net short position, suggesting they may take a breather from selling.
But the market gave up most of those gains on Wednesday, slipping in tandem with energy markets.
March white sugar fell $2.40, or 0.7 percent, to $359.90 per tonne.
COCOA
March New York cocoa rose $9, or 0.5 percent, to$1,979 a tonne, extending gains made in the prior session.
Prices were supported by the US dollar, which was set for its biggest monthly loss in nearly two years.
March London cocoa was unchanged at 1,385 pounds a tonne.
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