London cocoa, sugar and coffee slip

Cocoa, sugar and coffee prices all rose on Friday as consumer buying picked-up after the sharp sell-off across commodity markets during the last few days, dealers said. The markets advanced despite further losses in many other commodity markets as crude oil prices fell and the dollar strengthened, they added.
"Consumers are lining up around these levels to buy (soft commodities)," said Lars Steffensen, managing director of London-based commodities fund Ebullio Capital Management. September cocoa in London had risen 17 pounds to 1,478 pounds a tonne by 1510 GMT. The contract fell sharply after rising as high as 1,748 pounds on July 1.
"I think we've seen the worst for cocoa. There are still a few bears out there thinking it isn't over yet but the fundamentals are still supportive," one dealer said. Dealers said the market was underpinned by concern about top producer Ivory Coast's new crop. "Cocoa has specific news - there are a lot of fears about Ivory Coast cocoa not being as good quality as some were thinking," Steffensen said.
Price differentials for Ghana-origin cocoa beans rose sharply in Europe's physical market this week as buyers sought alternatives to Ivory Coast's new crop on fears of poor quality, traders said on Friday. September cocoa futures on ICE were up $23 at $2,767 a tonne. Raw sugar futures on ICE firmed on light investor buying, short-covering and book-squaring before the weekend. October raws were up 0.16 cents at 12.40 cents a lb, well above this week's low of 11.73 cents set on Wednesday.
The contract had traded as high 14.35 cents on July 3 and the subsequent setback was linked to a decline in crude oil prices. Prices for sugar, which is used in Brazil to produce biofuel ethanol, often track the crude oil market. London October white sugar futures were up $6.30 at $357.30 a tonne.
Dealers said the raw sugar market had potential to rise to 12.50 cents a lb, and that producer selling could kick in around that level. September robustas in London were up $31 at $2,344. Arabica prices also rose on ICE with September up 0.85 cents to $1.3605 per lb. "No one will sell aggressively out of coffee until we get past frost worries out of Brazil," Steffensen said.