London coffee and cocoa up

London robusta coffee and cocoa futures climbed on Friday, buoyed by strength in other commodities and energy markets as well as a weaker dollar, but both held in a tight range, while white sugar was flat. "Everything else in the commodity world seems to be up so it is just following suit a little bit," one cocoa trader said.
US crude oil futures climbed to a record near $128 a barrel on Friday, spurred by Goldman Sachs sharply raising its second-half 2008 price forecast, the weakening dollar versus the euro and continued worries over tight supply. July climbed 26 pounds or 1.8 percent to 1,467 pounds per tonne and September rose 28 pounds or 2 percent to 1,419 pounds per tonne. The volume was moderate, with 2,848 lots traded in July and 2,171 lots in September. "Normally, cocoa tends to respond to a CRB-type of move a day later, but I'm sure there is some sentiment, especially in the US with the dollar weaker," a London-based trader said.
Robusta coffee futures tracked arabicas higher, although origin selling near the top of the day's range capped gains. Benchmark July robusta closed up $35 or about 1.6 percent at $2,280 per tonne in a moderate volume of 5,703 lots. Europe's physical coffee market saw active purchasing of a range of origins this week as roasters sought to benefit from dips in New York prices, but business in the key exporters Brazil and Vietnam remained slack, traders said.
The July has held in a range between $2,096 and $2,391 for nearly two months and traders said there was little sign that a breakout in either direction is imminent. Vietnam's coffee production is forecast to rise to 21.5 million (60-kg) bags during the 2008/2009 crop year, a USDA attache in Hanoi said on Thursday. Nicaragua coffee exports jumped 43.4 percent in April to 174,646 60-kg bags, the national coffee export board said on Friday.
White sugar futures closed little changed, capped by abundant supplies and high freight costs, traders said. August white sugar settled $1.20 higher at $333.40 per tonne in a light volume of 1,127 lots.