Raw sugar futures settled higher on Friday, supported by the strong currency in top-grower Brazil, while cocoa prices rose on positive grind data from North America and Asia. March raw sugar settled up 0.02 cent, or 0.14 percent, at 13.89 cents per lb, more than 6 percent higher on the week, close to the previous session's eight-month high of 13.95 cents.
Short-covering linked to a stronger currency in top-grower Brazil supported a market rally in recent weeks. "I would imagine that on a rally like this when you've had the market down so much, (producers) are going to be stepping in to do (hedging)," said Stephen Maass, commodities analyst at the Hightower Report, as the commodity traded both sides.
December white sugar settled up 40 cents or 0.1 percent, at $379 per tonne to close the week up more than 4 percent. December arabica coffee settled barely changed at $1.221 per lb after rising to $1.2550, an 8-1/2-month high. It closed the week more than 4 percent higher. Dealers said speculators still tested technical resistance levels, but the recent wave of aggressive short-covering may be starting to wane.
January robusta coffee settled down $36, or 2 percent, at $1,739 per tonne, ending the week 0.8 percent higher. December London cocoa settled up 25 pounds, or 1.6 percent, at 1,606 pounds per tonne, 0.6 percent higher than the week prior. December New York cocoa settled up $17, or 0.8 percent, at $2,162 per tonne, closing the week barely changed.
Traders said positive North America grind data boosted sentiment, rising 2.5 percent in the third quarter to the strongest quarterly figure since 2014. Asia grindings rose 3.7 percent.