SOFTS-NY Cocoa Climbs to Six-Month High, Robusta Also Rises

cocoa

(Reuters) – New York cocoa futures rose to a six-month high on Thursday supported by technically driven buying and signs that demand is beginning to pick up after a prolonged period of low prices.

Robusta coffee futures were also higher as rains threatened to delay the harvest in Vietnam.

COCOA

* December New York cocoa was up $2, or 0.1 percent, at $2,099 a tonne by 1037 GMT after climbing to $2,121, the highest for the front month since April 5.

* Dealers said fund short-covering had helped to fuel the recent rise in prices with the technical outlook appearing constructive after the recent strong advance.

* Improved demand had also helped to boost prices.

* Europe’s third-quarter cocoa grind rose 3 percent from the same period last year to a six-year high of 353,544 tonnes, the Brussels-based European Cocoa Association said.

* “It is no surprise that we are seeing signs of stronger demand, given the pressure that we have seen cocoa prices under,” ING said in a market note.

* December London cocoa was up 7 pounds, or 0.4 percent, at 1,590 pounds a tonne.

* Dealers are now awaiting grind figures from North America, due next week.

COFFEE

* November robusta coffee rose $10, or 0.5 percent, to $1,985 per tonne.

* Dealers said the market was underpinned by short-term supply tightness ahead of the Vietnamese harvest, which should get underway next month.

* Heavy rains and flooding, which killed 37 people in Vietnam, could lead to some delays.

* One coffee exporter said the rains could delay the harvest by one to three weeks but another trader said it should be on time.

* December arabica coffee fell 0.45 cent, or 0.35 percent, to $1.2635 per lb.

SUGAR

* March raw sugar was down 0.10 cent, or 0.7 percent, at 14.20 cents per lb.

* Dealers said producer selling had helped cap the run-up in prices following three consecutive higher closes this week and the market remained rangebound.

* December white sugar was off $1.80, or 0.5 percent, at $374.70 a tonne.