(Updates throughout, adds detail)
NEW YORK/LONDON, Sept 13 (Reuters) - Arabica coffee futures on ICE reached a one-month high on Wednesday on technical buying, short covering and dry weather in top-grower Brazil’s growth regions.
New York cocoa futures rose as technical structure improved when prices topped a key resistance level.
* December arabica coffee settled up 2.8 cents, or 2.1 percent, at $1.3785 per lb, after technical buying lifted prices to $1.3830, the highest level since Aug. 15.
* Short covering linked to “general exhaustion to the market on the downside” and dry weather in Brazil helped boost prices, said Stephen Platt, futures strategist at Archer Financials in Chicago.
* “Below-normal rainfall is expected across the majority of the coffee belt” in Brazil for the next six to 10 days, Maryland-based meteorologist MDA Information Systems said in a daily report.
* A strong close the previous session improved technicals and paved the way for chart-based speculative buying, dealers said.
* November robusta coffee settled up $34, or 1.7 percent, at $2,003 per tonne after hitting a one-week high at $2,006.
* December New York cocoa settled up $39, or 2 percent, at $1,990 per tonne, after hitting a two-week high at $1,995.
* The technical structure improved when prices rose above a Sept. 5 high of $1,982, triggering buy stops and speculative short covering, said Boyd Cruel, commodity broker for High Ridge Futures in Gilbert, Arizona.
* “If we can get a close above there or the previous high on Aug. 28 of $2,002, we could see more technical buying,” Cruel said.
* December London cocoa settled up 33 pounds, or 2.2 percent, at 1,509 pounds per tonne.
* “There’s talk that demand could be better and that’s what’s been supporting the market in the past week, an outlook for better demand,” Cruel added.
* A buoyant broader commodity markets also provided support.
* October raw sugar settled up 0.31 cent, or 2.2 percent, at 14.33 cents per lb.
* Global raw sugar prices remaining below the ethanol parity in Brazil have boosted sentiment.
* Rising demand for ethanol in Brazil has lifted prices, encouraging mills to divert cane to production of the biofuel over sugar.
* The market has likely established a bottom, said Platt.
* “If we can hold the 14.50 area on the downside, you might be able to see market advance in 15.30, 15.50 area,” he said.
* December white sugar settled up $3.20, or 0.9 percent, at $372.30 per tonne.
Reporting by Renita D. Young in New York and Ana Ionova in London; Editing by Edmund Blair and Leslie Adler