New York cocoa jumps $100/tonne as speculators pile in

New York cocoa futures on ICE rose $100 a tonne in their biggest rally in six months on Wednesday, fuelled by speculative buying after prices soared above key technical levels, while raw sugar and arabica coffee hovered above multi-week lows.
New York cocoa futures were initially higher as some investors looked to re-establish long positions after a sharp sell-off during the second half of July. The rise above Tuesday's session high, however, triggered automatic buy orders that sent prices sharply higher, traders said.
The rally took place despite weakness in sterling to the greenback, a typical source of pressure to the dollar-traded market.
September New York cocoa settled up $97, or 3.4 percent, at $2,993 per tonne, after rising to $2,999, the highest since July 20 and just above the 50 percent Fibonacci retracement level back toward the July 15 peak.
Dealers said the market remained underpinned by tightening supplies with a large global deficit widely forecast for the current 2015/16 season (October/September).
September London cocoa futures settled up 56 pounds, or 2.4 percent, at 2,379 pounds per tonne.
Raw sugar was little changed, with gains partly capped by the rapid Brazilian cane crush.
Dealers said a firmer dollar contributed to weakness in both coffee and sugar markets.
"In Brazil we're still getting good harvesting conditions. As it motors on, they (Brazilian producers) are building stocks," a senior sugar analyst with a trade house said.
"August is traditionally a month when the market drifts lower."
October raws settled down 0.01 cent, or 0.05 percent, at 19.04 cents per lb.
The market remained just above last week's low of 18.71 cents, the weakest for the front month contract since June 24.
Dealers said the market looked set to consolidate just above the recent lows in the short term.
October white sugar ended flat at $528.40 per tonne.
Robusta coffee futures were little changed, although the market remained underpinned by tight supplies.
September robusta settled up $1, or 0.05 percent, at $1,827 per tonne.
September arabica settled down 0.85 cent, or 0.6 percent, at $1.404 per lb.