Coffee bounced to hit 1-month highs on Wednesday, supported by bullish market technicals, while sugar was firm. Cocoa prices were steady as dealers monitored the development of the 2011/12 crop. Arabica and robusta coffee futures climbed as market technicals indicated potential further gains. "There hasn't really been any significant change in terms of the fundamentals of the markets.
The rise has been largely technical in nature," Barclays Capital analyst Sudakshina Unnikrishnan said. December arabica coffee on ICE rose 2.75 cent or 1.1 percent to $2.5775 per lb at 1123 GMT. New York coffee has gained a strong bullish momentum and is expected to rise more to $2.6325 per lb, according to Reuters analyst Wang Tao. November robusta coffee on Liffe was up $50 or 2.1 percent at $2,394 per tonne.
ICE October raw sugar futures were slightly higher, as dealers kept one eye on macroeconomic developments, with risk averse investor sentiment continuing to weigh on commodities. October raw sugar on ICE was up 0.25 cent or 0.9 percent at 28.29 cents. "The Brazilian crop yield is disappointing," Commerzbank said in a commodities note.
The Philippines aims to sell more than 300,000 tonnes of sugar this year, including refined sugar, about 100,000 tonnes above a previous target, but traders said it will be difficult to find buyers for the lower-quality sweetener. October white sugar on Liffe fell $3.30 to $745.00 per tonne. Cocoa futures on ICE were steady, as dealers eyed weather developments in West Africa. December cocoa on ICE was up $1 or 0.03 percent to $2,990 a tonne, while Liffe December cocoa traded down 3 pounds at 1,893 pounds a tonne.