New York cocoa futures on ICE rallied to a 7-1/2-week high, buoyed by short-covering on the last trading day of the 2016-17 crop year in top grower Ivory Coast, while robusta coffee rose on renewed buyer appetite. December New York cocoa settled up $63, or 3.2 percent, at $2,043 per tonne, but later extended gains to $2,057, the highest since Aug. 8 for the spot contract.
Short-covering lifted New York and London cocoa markets on the last trading day of the 2016-17 crop year in Ivory Coast, traders said. New York spot contract closed the quarter up 7.4 percent, its first positive quarter in five, boosted by a decline in the value of the dollar against sterling during the period.
Month- and quarter-end buying also supported prices, dealers said. The December premium over March rose to a one-year high at $10 per tonne. December London cocoa settled up 40 pounds, or 2.7 percent, at 1,516 pounds per tonne. The spot contract closed the quarter down 1.1 percent, its fifth straight weak quarter.
November robusta coffee settled the session up $19, or 1 percent, at $1,968 per tonne. The second position closed the quarter down 8.4 percent, its weakest in two years. Dealers pointed the session's strength to short-covering, after the prior session's drop to a three-week low. "It was a fund-related move downward, but then we've had a pick on some industry covering," said one dealer, noting roasters resumed buying around the Thursday's low of $1,921.
December arabica coffee settled down 0.45 cent, or 0.4 percent, at $1.2805 per lb. The front month closed the quarter up 3.2 percent. Dealers said focus remained on Brazil, where crop-friendly rains were expected to relieve recent dryness. March raw sugar settled up 0.15 cent, or 1.1 percent, at 14.1 cents per lb. The second position closed the quarter up 2.8 percent, its first gain in four quarters.
The October contract, which expired at the end of the session, closed up 2.3 percent, at 13.54 cents, a 0.56-cent discount to March. December white sugar settled up $3.50, or 1 percent, at $362.20 per tonne. The front month closed the quarter down for the fourth straight three-month period. The European Union will end limits on sugar beet production at the end of this month, which is expected to dramatically boost output.