NEW YORK: New York cocoa prices rose slightly after earlier falling to a nearly six-week low on Tuesday as the market digested European cocoa grind data that indicated weaker-than-expected demand, while coffee erased the previous session's sharp gains.
COCOA
September New York cocoa settled up $9, or nearly 0.4pc, at $2,429 per tonne, after earlier hitting a June 6 low of $2,391.
Prices had been pressured earlier by disappointing data on cocoa grindings in Europe, an indicator of regional demand. Still, optimism about the potential for positive grinding data from Asia, due to be published on Friday, helped underpin the market, dealers said.
Europe's second-quarter cocoa grind fell 3.2pc from the same period last year, the European Cocoa Association said.
The market's positive close was an encouraging sign, said Jason Estrada, senior trader at INTL FCStone.
"I think we may have seen a bottom for this latest move. If that's true, we'll probably break $2,600 on the next move up," Estrada said.
Last week, prices touched a one-year peak of $2,589, but have since retreated steadily.
Data on second-quarter grindings from North America is due on Thursday.
September London cocoa settled up 14 pounds, or 0.8pc, at 1,835 pounds per tonne.
COFFEE
September arabica coffee settled down 4.7 cents, or 4.3pc, at $1.0555 per lb in volatile trade, having closed up 3.4pc on Monday.
Dealers continue to closely follow temperatures in top producer Brazil, with cool temperatures expected but the threat of frost appearing low.
The $1.0365 area, a 62pc Fibonacci retracement of the 96.25 cent June 19 low and the July 5 $1.1565 high was acting as support, dealers said.
US green coffee stocks rose by 210,255 bags to 6.8 million 60-kg bags by the end of June, according to the Green Coffee Association.
September robusta coffee settled down $33, or 2.3pc, at $1,401 per tonne.
SUGAR
August white sugar, which expired this session, settled up $1, or 0.3pc, at $295 tonne, after hitting a contract low of $291.50 on Monday.
There remained 16,554 lots of open interest in the contract as of Monday.
October raw sugar settled down 0.07 cent, or 0.6pc, at 11.99 cents per lb, after dipping to a May 31 low of 11.90 cents.
"Despite chatter about several weather issues, the amount of global stocks is limiting any chance of a decent rally," said a dealer.
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