US cocoa futures changed direction and finished higher on Thursday, lifted by the strong sterling after falling to a seven-month low in heavy dealings dominated by September/December spreading and substantial nearby supplies. Raw sugar and arabica coffee futures settled firm, with a boost from the bounce in the commodity complex. Key October raw sugar futures gained 0.46 cent, or 1.7 percent, to end at 28.08 cents a lb, after trading widely from 27.20-28.69.
Market rose on buying in anticipation of release of Unica figures and then came off after numbers were released, said traders. Market given boost by speculative buying, said dealers. But business on the light side as players cautiously look at macro economic issues going forward. Open interest in sugar at 587,233 lots as of August 10, lowest level since May 24, ICE Futures US exchange data showed.
December arabica coffee futures climbed 5.70 cents, or 2.4 percent, to finish at $2.4405 per lb. Support from the firm commodity complex and on continued short-covering, said traders. Market rangebound since inching up from a 6-1/2-month low earlier this week, at $2.3530, basis December. September/December spreading boosted volume substantially ahead of September's first notice day August 23, said traders. Total volume heavy at 34,677 lots, nearly double the 30-day average, according to preliminary Thomson Reuters data.
ICE certified arabica stocks rose 1,920 bags to 1,499,403 bags on August 10, still around 11-1/2-year lows. There were a light 2,520 bags pending grading, according to ICE data. Key December cocoa futures reversed to close up $15 at $2,886 a tonne, after hitting the lowest level for the second position since January 7 at $2,846. Heavy September/December position rolling continued to dominate the market as index funds rolled ahead of the September contract's first notice day August 18, said traders. September closed at a $30 discount to December, compared with $24 the previous day. Total volume reached 29,684 lots, up 55 percent from the 30-day average, according to Thomson Reuters preliminary data.