London cocoa at 2011 high

London cocoa futures on ICE rose to a more than four-year high on heavy volume on Thursday as fund buying buoyed prices, while raw sugar fell more than 3 percent in its biggest tumble in two months due to chart-based sell signals. Coffee futures nudged higher in choppy trading that lacked much direction. London cocoa rose for the third straight day, lifted by heavy fund buying, traders said, despite expectations for weak quarterly European and North American grind data set for release next week.
September London cocoa futures settled up 18 pounds, or 0.8 percent, at 2,200 pounds a tonne. That was just off the session high of 2,206 pounds, the highest on a continuation chart since March 2011. The contract's volume reached nearly 23,000 lots, the heaviest since December 2011, according to preliminary data, with the bulk around the session's highs. Second-month New York cocoa futures closed up $31, or 1 percent, at $3,278 a tonne.
Benchmark raw sugar futures dropped sharply, with more than 10 percent of the contract's volume in the two minutes leading into the settlement window, as prices extended losses. The front-month ICE raw sugar October contract finished down 0.41 cent, or 3.3 percent, at 11.90 cents a lb.
"October New York broke through the 12.15 cents a lb support level, which triggered a rapid selloff to below 12 cents," a European trade source said. More selling was triggered as the October contract fell below the 50 percent and 61.8 percent Fibonacci retracement levels going back to the contract low reached in June. "When they were breached, you had a little bit of liquidation," said Frank Jenkins, head of JSG Commodities in Connecticut. August white sugar futures closed down $11.40, or 3.1 percent, at $360 per tonne, the biggest one-day drop since May 13. The contract expires on July 16.
Robusta and arabica coffee futures were little changed, with the upside capped by the firmer dollar. This made dollar-based commodities more expensive in other currencies. "The low prices recorded over the last quarter, though not yet reaching crisis levels, will not encourage investment in the sector, and could result in reduced supply as producers withdraw from the market," the International Coffee Organisation said in its monthly report. September arabica ended up 0.3 cent, or 0.2 percent, at $1.2525 per lb, while September robusta closed up $3, or 0.2 percent, at $1,728 per tonne.