New York cocoa futures fell sharply on Friday, moving further off a six-week high, as speculators resumed selling following data that showed an unexpected decline in North American grindings. March New York cocoa was down $55 or 2.8 percent, at $1,929 a tonne by 1500 GMT, a day after hitting a six-week high of $2,011.
March London cocoa fell 28 pounds, or 2 percent, to 1,375 pounds a tonne. North American cocoa grindings had a surprise fall in the fourth quarter of 2017 and slipped to a five-year low for the full year.
Although dealers said two fires at a Chicago factory may have been partly behind the decline, the data bucked market expectations for a 1 to 3 percent rise. Dealers said the drop, coupled with the market's failure to hold above long-term moving averages a day earlier, had inspired speculative selling.
Market participants are now awaiting fourth-quarter grind figures from Asia, which were postponed from a scheduled Thursday release. Strong processing in Malaysia, coupled with a rise in Indonesian cocoa product exports, has boosted expectations for a positive result, said Jonathan Parkman, head of agriculture at Marex Spectron.
"We would expect the Asian grind to be significantly positive against last year," said Parkman. Dealers said they see Asian processing up 5 to 10 percent.
March raw sugar rose 0.14 cent, or 1.1 percent, to 13.22 cents per lb, rebounding after matching Thursday's low of 13.02, the weakest for the front month since September 27. Dealers were awaiting the latest Commitment of Traders (COT) report, due out on Friday, after a sharp rise in open interest this week signalled funds have likely extended their short position.
"The funds...are roundly blamed for the collapse from above 14 cents," said Sucden Financial's Tom Kujawa. The market has also been weighed by signs that India could have excess supplies for export in the 2017/18 season after the Indian Sugar Mills Association raised its production forecasts.
March white sugar rose $1.40, or 0.4 percent, to$354.50 a tonne. March robusta coffee was down $33 or 1.8 percent at $1,760 a tonne. Prices were pressured by producer hedging and speculative selling after climbing to a 1-1/2 month high on Thursday. March arabica coffee was down 0.50 cents, or 0.4 percent, at $1.2060 per lb.