Markets edge up after last week's sell-off

LONDON - Sugar, coffee and cocoa futures rose on Monday with other commodities after the dollar fell as traders took profits from over-sold markets last week.

By (Reuters)

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Published: Mon 18 Aug 2008, 7:00 PM

Last updated: Sun 5 Apr 2015, 11:54 AM

A report from merchant Czarnikow added to the bullish tone in sugar, predicting a shift to a 3.3 million tonne global deficit of the sweetener in 2008/09 from a 9.4-million-tonne surplus in 2007/08 due to falling output and rising consumption.

Dealers said the recovery in sugar futures in light volumes was more likely a reaction to last week's over-sold market than a direct response to the Czarnikow report.

"It's a bounce back based on the large move (lower) last week," a London-based sugar futures trader said.

ICE October raw sugar futures rose 0.25 cent to 13.37 cents a lb at 1119 GMT.

London October white sugar futures rose $10.0 or 2.7 percent to $383.00 a tonne in low turnover of 379 lots.

Other soft commodities joined the move higher across the commodities space after the dollar slipped and oil prices rose.

Industry and investor profit-taking lifted robustas in modest volumes, as benchmark November added $23 or 1 percent to stand at $2,228 a tonne in light volume of 2,057 lots at 1124 GMT.

ICE December arabicas rose 0.65 cent to $1.3745 a lb at 1125 GMT.

Dealers said the fundamental market backdrop in robustas appeared neutral due to ample availability of the physical commodity and steady demand.

London cocoa futures were little changed in thin trade due to an absence of leads to drive the market.

London December was up 4 pounds or 0.3 percent to stand at 1,453 pounds at 1126 GMT, with nearby support seen at 1,445.

ICE December cocoa was up $10 to $2,597 a tonne.

The main fundamental focus of the cocoa market was bean quality in the main crops in top West African growers, dealers said.

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