Cocoa futures on ICE rose on Tuesday, with the New York market buoyed by strength in sterling after a plunge the previous day, while raw sugar climbed on a lower-than-expected cane crush from top grower Brazil. December New York cocoa settled up $37, or 1.8 percent, at $2,045 per tonne, partly supported by a softer dollar index and a firmer British pound
December London cocoa settled up 14 pounds, or 0.9 percent, at 1,547 pounds per tonne. Both markets were supported by industry buying after the decline, while New York December faced strong technical support at $1,975, dealers said. Markets corrected higher after slumping 4 percent in the previous session, dampening upward momentum after gains made last week amid expectations for lower production in 2017-18 and a delayed start to the harvest, dealers said.
Total open New York interest rose 885 contracts to 249,978 contracts in the heavily traded tumble on Monday while it fell 4,773 contracts to 268,512 contracts in London, ICE data show. European third-quarter cocoa grind data was expected early Wednesday. "Traders talk of increased demand to go against big world production as prices are now attractive for grinders and chocolate manufacturers," said Jack Scoville, vice president of Price Futures Group in Chicago.
March raw sugar settled up 0.17 cent, or 1.2 percent, at 14.17 cents per lb, extending intraday gains to 14.27 after data showed top grower Brazil crushed less-than-expected amounts of cane in the second half of September. Brazil's center-south region crushed 40.309 million tonnes of cane and produced 2.848 million tonnes of sugar.
"With the crop now 80 percent harvested, the lost days and the slight switch from sugar to ethanol are less important than the impact of good rains on the next crop," Agrilion Commodity Advisers said in a market note. December white sugar settled up $1.10, or 0.3 percent, at $372.80 per tonne.
December arabica coffee settled up 0.05 cent, or 0.04 percent, at $1.31 per lb, after reaching a two-week high of $1.3270 and technical resistance at the 50- and 100-day moving averages around $1.33. Prices turned lower for the first time in four sessions, as traders said crop concerns in top grower Brazil had been worked into the market, though rain was still needed to ensure pollination.
November robusta coffee settled up $4, or 0.2 percent, at $2,007 per tonne.