London cocoa futures on ICE fell on Wednesday to a three-week low as a rallying sterling offset signs of recovering chocolate demand, while white sugar slipped to its lowest in more than two years amid expectations for a global supply glut. March London cocoa settled down 7 pounds, or 0.5 percent, at 1,357 pounds per tonne, after touching a three-week low of 1,329 pounds.
Dealers said prices were weighed by the sharply higher British pound, which posted its biggest daily rise against the US dollar in more than nine months. This offset the impact of signs that chocolate demand could be recovering, after Swiss chocolate maker Barry Callebaut reported sales volumes rose 8 percent in its first quarter.
"The figures are basically telling the same story that we're getting from the grinds - low prices are providing a stimulus to demand," said one dealer. "But it seems we still can't really shake off this surplus." March New York cocoa settled up $26, or 1.4 percent, at $1,955 per tonne, remaining within a two-week trading range.
March white sugar settled down $1, or 0.3 percent, at $351 per tonne, after falling to $350.50, the spot contract's lowest since September 2015. Prices were pressured by worries about a looming global supply glut amid a sharp rise in production from the EU, Pakistan, India and Thailand.
March raw sugar settled down 0.03 cent, or 0.2 percent, at 13.16 cents per lb, after falling to 13.04 cents. Total open interest rose by 15,332 lots to the highest since September at 912,141 lots on Tuesday, ICE data showed.
The spot contract was technically oversold around 29 on the 14-day relative strength index as prices hovered around last week's 3-1/2-month low at 13.02 cents. The market shrugged off data from Brazil cane industry group Unica that showed sugarcane crush and ethanol output fell in the center-south region during the first half of January.
March arabica coffee settled up 1.55 cent, or 1.3 percent, at $1.225 per lb. Total open interest rose to 245,886 contracts on Tuesday, the highest since November 1 when it hit a record at 245,897 contracts, ICE data showed.
The sharply lower US dollar index, which fell to a three-year low, along with the firm Brazilian real supported prices as it discouraged Brazilian producers from selling, traders said. March robusta coffee settled up $26, or 1.5 percent, at $1,775 per tonne.