London robusta coffee futures climbed to a fresh nine-and-a-half year high on Wednesday, buoyed by renewed fund buying before a sharp setback in New York's arabica market helped to erase gains in late trade. Cocoa futures ended higher, also boosted by fund buying, edging up towards a recent 4-1/2 year peak while white sugar finished lower.
March robustas ended a marginal $2 lower at $2,045 a tonne after touching $2,060, the highest level for the second month since May 1998. Dealers said the buying was triggered partly by bullish charts after March broke through key resistance at a double-top of $2,041 on Tuesday while the underlying fundamentals for robustas were also supportive.
"Even during the (stock market) crash in Europe and Asia the London (robusta) market continued to go higher. It is a sign of the real strength of the fundamentals," said fund manager Rodolphe Roche of Schroders. New York's arabica market did, however, suffer an adverse reaction to weakness in global financial markets with May down around 3.65 cents at $1.3405 per lb in late trading on Wednesday.
COCOA ADVANCES: London cocoa prices ended higher, edging up towards a four-and-a-half year high set earlier this month, boosted by fund and speculative buying. May cocoa finished 15 pounds higher at 1,151 pounds a tonne. The contract peaked at 1,175 pounds on January 14.
White sugar futures finished lower with physical demand appearing to have largely dried up after the recent rise in prices to a 13-month high. "The trade is still struggling to sell physical sugar. I think the market is overbought," one dealer said. March ended down $2.20 at $332.80 a tonne. The contract rose to $361.00 last week, the highest level for the front month since December 2006.