Cocoa prices dropped more than 3 percent on Friday on technical selling, while raw sugar futures were boosted by a rebound in global equity and energy markets. March New York cocoa settled down $39, or 1.6 percent, at $2,361 per tonne, down 2 percent for the week. It earlier dropped 3.4 percent to a session low of $2,314 per tonne, its lowest since Dec. 26.
Friday's price move was primarily technical selling, said Judy Ganes, president of J. Ganes Consulting. "It was a retracement from that (December) rally," she said. The contract hit its highest since July on Dec. 31, $2,439 a tonne. March London cocoa settled down 36 pounds, or 2.1 percent, at 1,724 pounds per tonne, earlier plunging 3.1 percent to 1,705 pounds. It retreated from the previous session's 5-1/2-month high of 1,773 pounds to end the week down 2.3 percent.
Dealers said buying appetite had waned as prices approached 1,800 pounds and the market could be set for a further fall, near-term. They noted most recent buying was technically driven and the pace of arrivals in top-grower Ivory Coast remained well above last season.
March raw sugar settled up 0.24 cent, or 2.1 percent, at 11.93 cents per lb, rebounding from the previous session's three-month low of 11.69 cents. It ends the week down 3.7 percent. Dealers said prices were boosted by short-covering, in a technically oversold market after the recent decline, while a recovery in global equities also lent support.
World stock markets rallied after China's central bank moved to support the country's slowing economy, Chinese services data pointed to positive growth, and Beijing announced a new round of trade talks with Washington. March white sugar settled up $6.80, or 2.1 percent, at $331 per tonne, yet down 2.4 percent from the week prior.
March arabica coffee settled down 0.55 cent, or 0.5 percent, at $1.016 per lb ending the week up 0.5 percent. When Brazil's currency backed off its highs, it helped weaken arabica prices, dealers said, encouraging producer selling by increasing local returns on dollar-traded commodities such as coffee.
March robusta coffee settled down $11, or 0.7 percent, at $1,545 per tonne, earlier hitting a near one-month high of $1,559. "Exports are still strong out of Brazil," said Ganes. "It's just a quiet market. There isn't anything to drive it at this second." The contract ends the week up 1.1 percent.