LONDON: New York cocoa futures rose on Tuesday, buoyed by fund short-covering against a backdrop of concern over the outlook for production in top grower Ivory Coast.
Cocoa
New York cocoa rose 2.9% to $8,688 a metric ton by 1408 GMT, climbing back towards Monday’s six-week high of $8,823.
Dealers said the market had gained support this week from concern over Ivory Coast’s coming crop, with the initial upward move on Monday helping to trigger short-covering by funds.
More sunny spells across most of Ivory Coast’s cocoa-growing regions will help to boost development of the next October-to-March main crop, farmers said on Monday, adding that cold weather continued last week with below-average rainfall.
London cocoa gained 2.05% to 5,830 pounds a ton.
Coffee
Arabica coffee futures were down 1.5% at $3.1580 per lb after touching a six-week high of $3.27.
Dealers said reports of light, spotty frosts in some Brazilian coffee areas had contributed to the run-up in prices this week, though the harvest continues to progress well.
Temperatures, however, are expected to moderate in the coming days.
“A cold air mass will retreat from southeast Brazil over the next three days, though it will linger near the southern border until early next week,” Marcin Gorski, analyst with LSEG Weather and Climate Research, said in a report.
Robusta coffee fell 1.5% to $3,610 a ton.
Sugar
Raw sugar ?????rose 2.55% to 16.91 cents per lb.
Dealers said the market had been steadily climbing after hitting a one-month low of 15.92 cents in early August, with speculators beginning to scale back a large net short position.
White sugar gained 2.1% to $484.80 a ton.
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