LONDON, Oct 1 (Reuters) - Raw sugar futures on ICE rose on Tuesday as funds covered their net short positions after deliveries against the October contract, which expired on Monday, were smaller than expected.
Cocoa steadied meanwhile after top producer Ivory Coast said it would cap production.
* March raw sugar was up 0.1 cent, or 0.8%, at 12.75 cents per lb by 1152 GMT, after peaking at 12.85 cents on Monday, its highest since Aug. 13.
* The October contract touched 12.02 on Monday ahead of expiry, the highest for the front-month since Aug. 5.
* Singapore agribusiness Wilmar was likely the sole receiver of about 175,000 tonnes of raw sugar that traders expect was delivered against the October contract.
* That delivery would be far below the more than two million tonnes delivered at the last expiry.
* Although nearby sugar supplies remain ample, expectations have mounted for an impending supply deficit next season while a significant reduction in the net short position held by speculators is also seen as potentially bullish.
* “With the funds still heavily short and the next expiry six months away, it is likely the upside looks more appealing than the downside, especially with chatter of a 5 million tonne of more global deficit next season,” said a dealer.
* He added, however: “(There is still) the small issue of 6 million tonnes of Indian stocks that need to be sold”.
* December white sugar was up $2, or 0.6%, at $346.30 a tonne after peaking at $347.20, the highest since early March.
* Ukraine produced 217,200 tonnes of white sugar as of Sept. 30. White sugar production is expected to fall by a third to 1.1-1.2 million tonnes this year.
* December New York cocoa was up $4, or 0.2%, at $2,446 a tonne.
* Top producer Ivory Coast said it will cap cocoa production at 2 million tonnes from the 2020/21 season to keep prices from falling.
* Ivory Coast also raised the guaranteed price it pays cocoa farmers to 825 CFA francs per kilogramme for the 2019/20 main crop harvest, up from 750 CFA francs last season.
* March London cocoa was up 3 pounds, or 0.2%, at 1,870 pounds a tonne.
* December arabica coffee fell 0.4 cents, or 0.4%, to $1.0080 per lb.
* December coffee may retest a resistance at $1.0220 per lb, a break above which could lead to a gain to $1.0325.
* November robusta coffee was down $3, or 0.2%, at $1,317 a tonne.
* Indonesia’s robusta exports from Sumatra rose 75% in September from the same month last year to 21,041 tonnes. On a monthly basis, exports rose 45%. (Reporting by Maytaal Angel; Editing by Emelia Sithole-Matarise)