Arabica coffee futures rose and traded near a two-year high, underpinned by concerns over drought in Brazil, while cocoa rose on expectations of a global deficit and firm demand. Raw sugar was flat and upside potential generally in soft commodities was capped by concerns over Chinese growth. China's industrial output growth came in below forecasts for the combined January/February period, with retail sales also weaker than expected, stoking worries that growth could slow as Beijing pushes for economic reforms.
"Disappointing Chinese industrial output data will take momentum out of markets that have done well," said Edward Bell, a senior commodities analyst at the Economist Intelligence Unit (EIU). Arabica coffee prices have surged around 80 percent so far this year, fuelled by concerns over the crop impact of the unseasonably dry weather in Brazil. May arabica coffee futures on ICE were up 0.6 cents or 0.3 percent at $2.0595 per lb by 1442 GMT. The contract peaked at $2.0975 on Wednesday, the highest level for the benchmark second position since February 2012.
Robusta coffee futures on Liffe were marginally lower with May down $4 or 0.2 percent at $2,196 a tonne. The second position peaked at $2,218 on Wednesday, a 17-month high. ICE raw sugar futures were flat, with upside potential on concerns over the prolonged dry weather in top producer Brazil neutralised by concerns over economic growth in China.
"The sugar market has pulled back from recent highs over the last few days as rains in Sao Paulo and other states of the centre south region have received the best rains in months," said Michael McDougall, senior vice-president at broker Newedge USA. May raws on ICE were down 0.01 cent, or 0.1 percent, at 17.66 cents a lb. Liffe May white sugar futures were unchanged at $461.90 per tonne in slim volume of 2,242 lots. Cocoa futures on ICE firmed, with May up $60 or 2.0 percent at $3,006 a tonne after climbing to a peak of $3,027 on Tuesday, a 2-1/2-year high, supported by expectations for a global deficit and strong demand. May cocoa on Liffe stood 25 pounds or 1.4 percent higher at 1,876 pounds a tonne, having touched a 2-1/2-year high on 1,888 pounds on Tuesday.