London cocoa rises

Cocoa futures rose on Friday, underpinned by stronger stock markets, higher oil prices and a weaker dollar, while coffee and sugar edged lower in two-way investor dealings. In US cocoa futures, attention was also focused on recent slow arrivals of West African main crop beans after heavy rains.
World stocks rebounded from a 5-1/2 year low on Friday and oil rose above $50 as expectations of further interest rate cuts helped to cushion deepening gloom about the broader economy. Oil rallied from 3-1/2 lows on Friday, spurred partly by gains in global stock markets reflecting hopes that central banks around the world might cut interest rates, including China.
"The dollar is weaker, encouraging the taking (buying) of commodities in general," said one London cocoa dealer. "Crude has bounced back, but the most important factor (supporting cocoa) is equities, which are performing a bit better." Benchmark ICE March cocoa was up $29, or 1.4 percent, at $2,038 per tonne at 1150 GMT. London March cocoa was up 18 pounds, or 1.3 percent, to 1,420 pounds per tonne in volume of 4,257 lots.
Nigeria's cocoa exports fell by 12 percent to 9,786 tonnes in October from the same period last year, data from the Federal Produce Inspection Service (FPIS) showed on Friday. In robusta coffee, London January erased early gains and was down $16 to $1,803 per tonne in thin volume of 2,052 lots at 1608 GMT. ICE March arabicas were down 0.15 cent to $1.2270 per lb.
Sugar futures edged lower on two-day investor dealings in the afternoon, underpinned by firmer stock markets and oil prices. "The market is in a range," said David Sadler, a senior sugar futures trader. "I don't expect a collapse in the market, but until we see serious offtake, there's going to be ample sugar around."
However, analysts said sugar market fundamentals were improving in the medium term due to expectations of widening global deficits of the sweetener in the next few years. ICE March raw sugar was down 0.17 cent or 1.48 percent to 11.34 cents a lb at 1629 GMT. London March white sugar was down $3.9 or 1.2 percent to $318.60 per tonne. Sugar deals in Asia have dried up at a time when trade usually jumps, as cash liquidity worries and poor demand have dampened sentiment.