Markets

Raw sugar climbs on fund short covering, cocoa turns higher

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SUGAR

March raw sugar settled up 0.15 cent, or 1.1 percent, at 14.38 cents per lb, not far below Wednesday's three-month high of 14.84 cents.

The spot contract closed the week down 1.7 percent.

Dealers said the market rose on fund short covering, with the move lifting prices above the 50-day and 100-day moving averages the day after the March contract fell below them.

"The white premium has come up, which may be making people feel a bit more positive about demand further out. That could be helpful for raws," said a European analyst.

December white sugar's premium over March surged to a one-year high at $8.50, with dealers pointing to limited nearby supplies.

March white sugar settled up $3.50, or 0.9 percent, at $377.50 per tonne.

COCOA

March New York cocoa settled up $1, or 0.05 percent, at $2,056 per tonne. It closed the week down 2.3 percent, its biggest weekly drop since mid-August.

Earlier, March futures fell to the lowest since Oct. 10 at $2,032, where the 50-day and 200-day moving averages nearly converged and appeared on track to form a golden cross, a technical formation that is potentially bullish.

The slow pace of port arrivals in top grower Ivory Coast and concerns about the threat posed by crop disease have led some to believe output could be smaller than 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," one dealer said.

Protesters clashed with police in western Ivory Coast's cocoa belt after the death of a youth leader, raising the prospect of more disruptions to the harvest.

December London cocoa settled up 9 pounds, or 0.6 percent, at 1,559 pounds per tonne.

COFFEE

December arabica coffee settled down 2.45 cents, or 1.9 percent, at $1.2395 per lb. It closed the week down 2.1 percent.

Total open interest fell to 241,292 lots on Thursday, down 4,605 lots from the prior session's record high as prices rallied, ICE data showed.

January robusta coffee settled down $14, or 0.8 percent, at $1,856 per tonne.

 

 

Copyright Reuters, 2017