London sugar, coffee rise

Sugar and coffee futures rose on Friday as the markets slowly began to rebuild after the steep losses of the last few weeks, dealers said. "I think most of these markets are now building a base. I don't think you are going to see any more spectacular collapses," said Lars Steffensen, managing director of Ebullio Capital Management.
Dealers said the rise was driven largely by short covering with few willing to yet take on aggressive long positions. "I think people have just said let's scale back a bit (on shorts) and that is the buying you are seeing. I don't think there are any fresh longs going into any of these markets," Steffensen said.
March raw sugar on ICE was up 0.19 cent or 1.7 percent at 11.35 cents a lb at 1456 GMT. The contract touched 10.91 cents on Thursday, the lowest level for the front month since June 17. Dealers said sugar was boosted by a rise in energy prices. Crude oil rose above $70 on Friday. December white sugar in London rose $3.70 to $323.50 a tonne.
India, the world's largest sugar user, is well stocked after recent purchases as consumers turn their attention to the crushing season in Asia amid expectations of tighter supply next year. Coffee futures also advanced, boosted by a pick-up in roaster buying following the sharp decline in prices of the last few weeks.
January robustas in London were up $33 at $1,794 a tonne. The contract has fallen steeply after trading as high as $2,382 a tonne in late August. December arabica futures on ICE rose 2.50 cents at $1.1545 per lb. Cocoa futures were little changed with the market also looking to consolidate after a sharp setback.
December cocoa futures on ICE rose $4 to $2,128 a tonne while December cocoa in London eased two pounds to 1,270 pounds a tonne. Dealers said cocoa prices continued to be driven by the performance of wider financial markets, limiting the impact of news that an election in top producer Ivory Coast was set to be delayed. Ivory Coast's presidential election scheduled for November 30 is "technically impossible" this year and will be postponed to 2009, an official at the Independent Electoral Commission (CEI) said on Friday.