Liffe front-month, December white sugar ended $21.40 higher at $697.70 per tonne on Tuesday after earlier hitting an 8-month high for the front month of $698.30 a tonne. Market supported by tight supplies, Brazil port congestion and the strength of US corn futures.
Liffe second-month March cocoa ended 7 pounds higher at 1,936 pounds a tonne. Market underpinned by talk of black pod disease in West Africa while third quarter grind data, to be released later this week, keenly awaited for any sign that the adverse economic climate in the US and Europe may be weighing on demand.
Liffe second-month January robusta coffee ended $26 higher at $1,687 per tonne. Market dragged higher by surging ICE arabica prices but an expected large crop in Vietnam helped to keep a lid on prices. "The selling has been largely on liquidation and profit-taking, but there has also been some good scale buying by trade and end user," Nick Penney of Sucden Financial Sugar said.
"We feel that this is just another correction in the short term before another move higher." Sugar markets were underpinned by reports of Brazilian industry buybacks amid a domestic price rally, congestion at Brazilian ports and strength in US corn futures, dealers said. Corn is used in sweeteners.
Jonathan Kingsman, managing director of Lausanne-based consultancy Kingsman SA, said buy backs of sugar from the trade by Brazilian mills may have wrapped up, taking pressure off the market. The market's direction could be linked to weather updates from top producer Brazil, analysts said.
Brazil's main coffee regions were forecast to receive light rain during the week, providing welcome extra moisture while avoiding deluges that could threaten the crop's delicate flowering phase. Arabica coffee futures rallied on investor buying, while robustas edged up with dealers noting that strong demand for robusta coffee was expected to underpin the market over the coming year and could exceed the global crop.
Dealers noted the wide premium arabica coffee holds over robusta, which has widened in recent months as the arabica market's gains have outpaced the robusta market. "It's (the premium) still at a very high levels. One market has got to give," a London-based broker said.