Cocoa futures rose on Friday, with the London contract hitting its highest level in more than three years, supported by a slow-down in port arrivals. Meanwhile, white sugar prices climbed to a 2-1/2 year peak, and arabica coffee rose.
May London cocoa settled up 15 pounds, or 0.7%, to 2,045 pounds per tonne after touching 2,074 pounds, the highest level for the benchmark second position since November 2016. The contract was up 3.8% on the week. Dealers said funds were increasing net long positions in both London and New York cocoa while there may also have been buying related to the expiry of March New York options later on Friday, with significant open interest at $2,900 and above.
They noted there was also support from a slowdown in the pace of port arrivals in Ivory Coast and concern about adverse weather in the world's top producer. No rain fell last week in most of Ivory Coast's cocoa regions, farmers told Reuters, adding to concerns over crop development during a crucial growing period.
A weak pound has also offered support to sterling-denominated London prices. May New York cocoa rose by $33, or 1.2%, to settle at $2,898 a tonne after peaking at $2,935, the highest for the second position since April 2018. March white sugar settled up $14.10, or 3.8%, at $428.10 a tonne after touching $429.90, the highest since June 2017.
The contract was up 5.1% on the week. March raw sugar settled up 0.18 cents, or 1.2%, at 14.92 cents per lb, climbing back toward the two-year high of 15.13 cents set on Tuesday. May arabica coffee rose by 0.15 cents, or 0.5%, to settle at $1.0050 per lb, pulling up from a 3-1/2 month low of 99.55 cents set on Thursday. Still, the contract settled 4.2% lower on the week. May robusta fell $7, or 0.3%, to $1,290 a tonne.