13 de enero de 2016 / 13:20 / en 2 años

SOFTS-Cocoa futures rise as fund selling abates, sugar also up

* Funds have scaled back huge net longs in cocoa futures

* Double bottom on charts underpins March raw sugar

By Nigel Hunt

LONDON, Jan 13 (Reuters) - Cocoa futures were higher on Wednesday as the market finally began to find some support after a steep setback during the past few days as funds scaled back huge net long positions in both London and New York.

Sugar and coffee futures also rose as other commodity markets, including copper and crude oil, recovered some ground on Wednesday after steep declines during the last few days linked to concerns about an economic slowdown in China.

“The market has started to find an area of consolidation and support...The first few days of the year have been among the most brutal I can remember,” one cocoa trader said, referring to the heavy volume of sales in the last few days.

March New York cocoa was up $26 or 0.9 percent at $2,886 per tonne at 1259 GMT. The front month dipped to a low of $2,852 on Tuesday, its weakest level since April 2015.

Dealers said commitment of traders data, to be issued on Friday and Monday, should show substantial reductions in speculative net long positions in both New York and London cocoa during the last few days.

Other commodity markets, including copper and crude oil, also recovered some ground on Wednesday after steep declines during the last few days linked to concerns about an economic slowdown in China.

Dealers said another key focus would be fourth quarter European grind data, to be issued on Friday, which was expected to show a year-on-year rise of about two to five percent.

May London cocoa rose 9 pounds or 0.4 percent to 2,075 pounds a tonne.

Raw sugar futures also advanced, boosted by the overall firmer tone in commodity markets, with March up 0.14 cents or 1.0 percent at 14.19 cents a lb.

The front month had slumped to 13.93 cents a lb on Tuesday, equalling a low set two months earlier.

“The 13.93 level has become a double bottom on the March chart and represents strong technical support for the time being,” Nick Penney, senior trader with Sucden Financial, said in a market note.

March white sugar rose $4.40 or 1.1 percent to $416.90 per tonne.

Arabica coffee futures were also higher with March up 0.80 cents or 0.7 percent at $1.1515 per lb. The contract has lost about 10 percent of its value so far in 2016.

March robusta futures were up $8 or 0.6 percent at $1,456 a tonne. (Editing by William Hardy)

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