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NEW YORK/LONDON: ICE arabica coffee edged up in choppy, heavy trading on Friday, climbing to a third straight week of gains, as traders worried about damage to crops in Brazil as the first wave of much-needed rains got off to a slow start in the top grower.
Sugar futures in New York and London fell back as the renewed Brazil rains damped worry over crops in the top grower, now in the off season, and excess world supplies weighed.
Cocoa futures in New York and London were mixed in currency-related dealings but hovered near the week's 2-1/2-year highs set as the possible return of El Nino weather conditions renewed worries about a global deficit.
The second-month May arabica coffee contract on ICE Futures U.S. inched up 0.35 cent, or 0.2 percent, to finish at $1.4230 per lb after mixed trading throughout the session.
The second-month rose to a third straight up week, with momentum slowing as producer selling has absorbed some of the investor buying
ICE soft commodity markets will be shut on Monday, Feb. 17, for the U.S. Presidents Day holiday, and will reopen on Tuesday.
Dealers said it would be difficult until the harvest to assess the damage to Brazil's coming coffee crop from recent unseasonably dry weather, although the forecast rains were seen alleviating some of the stress to trees.
Even so, prices reversed to end the day up as the slow start to rains in the parched coffee belt and continued concern over already existing damage put a lid on selling.
"We have to see how much the crop can recover," said Sterling Smith, a futures specialist with Citigroup in Chicago.
Meanwhile, in the physical market, dealers said there had been particularly active selling from Brazil, taking advantage of the weather-led rally that began around two weeks ago.
A Brazilian cooperative this week said that the dry weather over the past six weeks has caused losses of 30 percent to its 2014 crop.
Liffe May robusta coffee closed down $16, or 0.9 percent, to settle at $1,806 a tonne.
Arabica coffee prices posted a third straight annual loss in 2013 as excess supplies weighed.
Even so, U.S. premiums have surged as supplies of Central American high-quality coffee beans have plunged and reignited concerns over damage from coffee leaf rust.
LONDON SUGAR FALLS AFTER DELIVERY
The return of rain in Brazil weighed on sugar futures, which ended the week down, after seeing a more subdued recovery than coffee futures, as the crop is between seasons.
In New York, March raw sugar futures slipped 0.03 cent, or 0.2 percent, to close at 15.63 cents per lb.
May white sugar futures on Liffe, which became the benchmark contract on Friday, eased $1.70, or 0.4 percent, to $441.50 per tonne.
The Liffe March white sugar delivery totalled 236,850 tonnes or 4,737 lots, in line with market expectations.
"We had a decent delivery that could be viewed as bearish, as it is indicative of a weak cash market," said Sterling Smith, a futures specialist with Citigroup in Chicago.
Spot London futures broke below $400 per tonne last month for the first time since 2009 as subdued demand and excess supplies weighed.
Dealers awaited further clarity on India's plans to support its local sugar industry, a move that is expected to increase the country's exports.
May cocoa on Liffe eased 3 pounds, or 0.2 percent, to finish at 1,855 pounds a tonne, hovering below Wednesday's peak at 1,871 pounds, the highest for the second-month contract since September 2011.
May cocoa on ICE rose $9, or 0.3 percent, to finish at $2,967 a tonne, having earlier matched Thursday's 2-1/2-year high of $2,977.
The rise of the British pound against the U.S. dollar weighed on the London market, encouraging selling of the sterling-traded commodity.
Even so, prices in both London and New York were underpinned as the possible return of El Nino conditions ignited worries about crop losses in top grower Ivory Coast for a market already expected to endure another deficit year.
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