March cocoa in London ends 29 pounds higher at 2,177 pounds a tonne on Tuesday. Market boosted by the weakness of sterling against the dollar and is now back within striking distance of a 24-1/2 year high for the second month of 2,226 pounds set early last week. London November robusta coffee ends off $17 at $1,414 a tonne as a stronger dollar sparked a setback after the market's sharp advance on Monday.
December white sugar in London ends $3.30 higher at $593.80 per tonne. Market supported by reduced crop prospects in top consumer India and renewed fund buying. Coffee prices fell on Tuesday, relinquishing a fund-led rally in the previous session as a stronger dollar sapped investor interest in soft commodities.
While ICE cocoa futures were held back by unfavourable currency moves, London prices clawed up with weaker sterling making the market slightly more attractive. Overall sentiment was weighed by a strong start to the cocoa season in top grower Ivory Coast. Losses on sugar were capped by expectations for global supply tightness. "Coffee is a bit of a dollar story, all commodities are a bit of a dollar story today," one London-based dealer said.
"There is a lot of economic data coming out, so maybe dollar buying is safe-haven buying," he added. Dealers also said the market looked slightly overdone after US futures rose more than 5 percent on Monday. "There is going to be a lot of robusta coffee next year, so I see prices moving sideways but in New York it depends on the crop coming out at the moment. All eyes on Brazil," the dealer said.
In fundamental news, coffee exports from Costa Rica in October fell 56 percent year-on-year to 22,807 60-kg bags, the national coffee institute Icafe said on Monday. Coffee exports from Guatemala rose 6.37 percent in October to 82,560 60-kg bags, Anacafe said.
Raw sugar futures eased, also pressured by the dollar's strength, but dealers said the market was trying to find support at lower levels from reduced production estimates for top consumer India. A crop update for top producer Brazil later this week will also be closely watched with concern that rains may diminish yields.