Some dealers noted bullish factors included a further rise in the already large speculative net short position and the prospect of the global market swinging into deficit in the 2019/20 season. "The firewood is dry, but it needs a spark to set it alight," Marex Spectron said in a market update. Other dealers, however, pointed to high stocks and likely Indian exports as bearish factors.
"Despite the fact that the global sugar market is set to return to deficit in the 2019/20 season, sentiment is clearly still very bearish, with high stock levels globally, and the threat of significant Indian exports," ING said in a note. December white sugar settled up $3.6, or 1.1%, at $329.3 per tonne.
December arabica settled up 0.6 cent, or 0.6%, at 99 cents per lb. The contract dipped on Friday to a low of 98.05 cents, its weakest since Sept. 10. Dealers said there were still some concerns about the impact of dry weather in Brazil on flowering although rains may improve the situation in the next few days. A potential tightening in exchange (certified) stocks in the upcoming season also helped to underpin the market.
"In 2019/20, we anticipate an arabica deficit of about 5 million bags. As the crop year progresses, the discounts applied to the certified stock will increase, making it ever more competitive. We expect the total stock to drop to between 0.5 - 1.0 million bags by next summer," Marex Spectron said. November robusta coffee settled up $12, or 0.9%, at $1,316 per tonne.
December New York cocoa settled down $19, or 0.8%, at $2,454 per tonne. The contract on Friday touched a peak of $2,484, its highest since July 26. Dealers said a stronger dollar had helped exert some downward pressure on New York cocoa futures, with the US currency rising to a six-day high against sterling. December London cocoa settled up 5 pounds, or 0.3%, at 1,881 pounds per tonne.