January 31, 2018 / 12:23 PM / 9 months ago

SOFTS-Robusta coffee climbs off 2-week low, NY cocoa also higher

LONDON, Jan 31 (Reuters) - Robusta coffee futures rose on Wednesday as industry buying boosted the market off a two-week low, while a weaker dollar supported New York cocoa and energy markets pressured raw sugar.

COFFEE

* March robusta coffee was up $34, or 2 percent, at$1,762 a tonne by 1203 GMT.

* Prices fell to a two-week low in the prior session, pressured by producer selling and a weakening in the arabica coffee market.

* However, dealers noted lower prices had drawn strong demand from roasters at Tuesday’s close and Wednesday’s opening, which had boosted the market.

* “There was some Vietnam selling...but they didn’t chase the market down,” said one dealer. “And there was very good industry buying.”

* While there was still significant hedging by producers in top grower Vietnam, dealers noted they were reluctant to sell at lower prices, which was also lending support to the market.

* March arabica coffee also rose 0.50 cents, or 0.4 percent, to $1.2280 per lb.

* Prices dropped on Tuesday, pressured by a decline in the Brazilian real. A weaker real improves local currency returns on dollar-based commodities like coffee, encouraging producers to sell.

* The currency partly recovered on Tuesday, lending support to arabica prices.

* However, dealers said gains were capped by expectations for ample global supplies, although speculative short-covering could temporarily add support.

* “We expect a record Brazil crop, the question is by how much,” the dealer said. “So that’s bearish - but at the same time, the funds have a record short position in the market.”

COCOA

* March New York cocoa rose $14, or 0.7 percent, to$1,984 a tonne, extending gains made in the prior session.

* Prices were supported by the U.S. dollar, which was set for its biggest monthly loss in nearly two years.

* However, enduring concerns about ample global supplies amid strong port arrivals in top grower Ivory Coast capped gains.

* March London cocoa climbed 2 pounds, or 0.14 percent, to 1,387 pounds a tonne.

SUGAR

* March raw sugar fell 0.08 cents, or 0.6 percent, to 13.64 cents per lb.

* Prices hit a two-week high on Tuesday, boosted by short-covering following recent data showing funds had built a record net short position.

* However, dealers noted ample supplies and a third consecutive drop in oil prices was weighing on the market.

* March white sugar fell $1.90, or 0.5 percent, to $360.40 per tonne. (Reporting by Ana Ionova; Editing by Ken Ferris)

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