London robusta coffee and cocoa futures rose on investor and fund buying on Tuesday, while white sugar moved sideways, underpinned by firm physical demand for the sweetener, dealers said. Coffee led the gains, as technical buying by investment funds and speculators buoyed prices already supported by news of slowing sales from Vietnam and lower stocks in Brazil.
London September robusta coffee futures rose by up to 2.5 percent to a session high of $2,213, before easing back to settle at $2,195, up $37. Vietnam's coffee sales have slowed as farmers hold back supply because of low domestic prices, Vietnamese traders said on Tuesday. Prices in the country, tracking London futures, have dipped more than 3.5 percent this week.
Meanwhile, coffee stocks in Brazil, the world's biggest coffee producer, have reached their lowest level in memory, which could spell volatile weather-related price swings according to specialists. London cocoa futures hit a new contract peak of 1,552 pounds a tonne, extending gains from last week.
A weak pound and concerns over the outlook for bean quality and output in top cocoa grower Ivory Coast underpinned fund and investor buying in the commodity, dealers said. London September cocoa futures finished at 1,534 pounds a tonne, up 4 pounds, in brisk volume of 3,530 lots. Dealers saw key resistance at 1,567 pounds a tonne.
White sugar futures lacked momentum and remained range-bound in light two-way speculative trade, underpinned by firm demand for physical white sugar. London August white sugar futures settled up $1.7 at $342.4 per tonne in moderate volume of 2,696 lots. Dealers said they expected prices to be underpinned in the short term by tight physical supply of 45- and the less refined 150-ICUMSA sugar.