Cocoa futures closed firm on volatile chart-based dealings on Friday, as the market formed a potentially bullish indicator, while ICE arabica rose with any crop relief from rain in top grower Brazil's coffee belt seen as limited. Raw sugar on ICE Futures US climbed for the fifth straight day to a two-week high, on the heels of the firm Thomson Reuters/CoreCommodity CRB Index.
Cocoa futures were higher with ICE May closing up $28, or 0.9 percent, at $2,983 a tonne, trading in a wide $88 range as the market approached a 2-1/2 year high of $3,039 a tonne set earlier this month. July cocoa on Liffe rose 13 pounds, or 0.7 percent, to finish at 1,883 pounds a tonne, in a wide 44-pound range. Both contracts marked outside reversals higher, falling below the previous session's low and closing above its high, which can sometimes be interpreted as a bullish technical indicator.
Both the New York and London markets were initially lower, but a lack of follow-through selling forced investors to cover their short positions, pushing the market higher. Even more buying came into the market after rising above the prior session's high, dealers said. Europe's first quarter grind data was due to be released on April 10. North American data will be released April 17.
May arabica coffee on ICE settled up 4.25 cents, or 2.4 percent, at $1.8060 per lb, rising 5.5 percent for the week after tumbling 13.5 percent the previous week. The spot contract surged to a two-year high of $2.0755 per lb earlier this month in an astonishing 80 percent rally in just seven weeks as the severe drought in Brazil's main arabica growing regions raised production concerns. Prices fell back as rain finally reached Brazil, though precipitation has been below average.
May robusta coffee on Liffe rose $13, or 0.6 percent, to end at $2,096 a tonne. Dealers said the setback in prices has slowed sales by farmers in top robusta producer Vietnam. Raw sugar futures on ICE rose to the highest level in more than two weeks in choppy conditions. Dry weather in Brazil's main center-south sugar cane growing region has cut 2014/15 production prospects by 35 million tonnes, taking the forecast crop to 586 million tonnes, trade house Sucre et Denrees (Sucden) said on Friday.
May raw sugar futures on ICE ended up 0.11 cent, or 0.6 percent, at 17.98 cents a lb after earlier peaking at 18.10 cents, its highest level since March 11. It closed the week up 6.8 percent. Liffe May white sugar futures closed up $0.30, or 0.06 percent, at $478.00 per tonne.