Total open interest rose for the ninth straight session on Friday to 941,570 contracts, the highest since June 2013, ICE data show. Data released after the market closed on Friday showed speculators increased their net short position in raw sugar contracts by more than 60,000 contracts to a record 156,307 contracts in the week to January 23, US government data showed.
This was seen as bullish for the market as it signalled funds, having sold so aggressively, may now have to take a breather and potentially cover short positions. Prices were on track to finish January down around 10 percent, which would be the worst monthly performance since March 2017, on speculative selling against a backdrop of a looming global supply glut.
Dealers said gains were limited because producers still need to hedge and will likely seek opportunities to sell into any rallies. "The fundamental background continues to favour the bears," Nick Penney, senior trader at Sucden Financial, said in a note. "If no corrective rally materializes, we fear producers will eventually run out of patience and bring pricing programs even lower."
March white sugar settled up $5.80, or 1.6 percent, at $361.40 per tonne. March arabica coffee settled down 0.2 cent, or 0.2 percent, at $1.2495 per lb, pressured by the dollar index, which made gains after six weeks of losses.
March robusta coffee settled down $10, or 0.6 percent, at $1,757 per tonne. Vietnam's January coffee exports are estimated to have risen 25.1 percent from the previous year, the government said.
March London cocoa settled down 11 pounds, or 0.8 percent, at 1,370 pounds per tonne. March New York cocoa settled down $40, or 2 percent, at $1,946 per tonne, weighed down by the weak sterling versus the US dollar.
Though last week's cocoa arrivals at ports in top grower Ivory Coast were below the prior season's year-to-date levels, weekly arrivals reached 67,000 tonnes, up from 49,000 tonnes in the same period last year, exporters estimated.