"What may give sugar its impetus is a risk-off attitude to investments by the fund community which could translate into a reduction of exposure to markets. In the case of sugar, this would mean further short covering of positions which had recently got to record levels," Sucden Financial senior trader Nick Penney said in a market note. Weekly CFTC data, to be issued later on Friday, should show a reduction in the speculative net short position, but it is likely remain large.
December white sugar was up $6.00, or 1.8%, at $346.60 a tonne. Dealers said news that Syria has issued a tender for purchase 80,000 tonnes of white sugar had provided some support to the market. December arabica coffee fell 0.7 cents, or 0.7%, to $1.0135 per lb. Dealers said the market remained on the defensive due to ample supplies following two seasons when production outstripped demand.
Colombia produced 1.09 million 60-kg bags of washed arabica coffee in September, up 4% from the same month a year earlier, the national coffee federation said on Thursday. November robusta coffee was down $1, or 0.1%, at $1,311 a tonne. December New York cocoa was down $15, or 0.6%, at $2,505 a tonne after rising to a peak of $2,535, the highest price for the contract since July 24.
Dealers said the recent run-up had temporarily run out of steam but the market remained underpinned by expectations that the global market is likely to swing into deficit in the 2019/20 season despite continued strong production in Ivory Coast. Cocoa arrivals at ports in Ivory Coast reached 2.179 million tonnes for the period from Oct. 1 last year to the end of September, CCC data showed on Friday, up nearly 11% from the same period last season. March London cocoa was up 4 pounds, or 0.2%, at 1,910 pounds a tonne, supported partly by a weak pound.