OREANDA-NEWS. February 05, 2015. Cocoa futures edged higher on Wednesday with the market extending its rebound from a one-year low set earlier this week although ample supplies looked likely to cap gains.

Raw sugar and arabica coffee futures also rallied as markets were technically oversold following recent declines.

March New York cocoa on ICE was up 2.2 percent at \\$2,751 a tonne at 1318 GMT as the rise gathered momentum after the market broke above its 10-day moving average.

Prices have dropped almost \\$350 from this year's peak of \\$3,016 set on Jan. 8 to a low of \\$2,669 on Monday so a short-term rebound was not unexpected, they added.

"The market remains well supplied and demand has weakened a bit and that is going to weigh on the price over the course of the year," Capital Economics analyst Hamish Smith said.

May London cocoa futures rose 20 pounds or 1.1 percent to 1,903 pounds a tonne.

March raw sugar futures on ICE rose 0.16 cent or 1.1 percent to 14.63 cents a lb. The front month fell to a low of 14.10 cents on Monday, its weakest level in almost one month.

"In the short term, we expect the range to continue in a rough 14/15 cent bracket perhaps up to March NY (raws) options expiry a week on Monday," Sucden Financial senior trader Nick Penney said.

"Once this is out of the way and spot month position limits imposed, the front spread may get a little more volatile as expiry intentions by the trade unfold."

March raws expires on Feb. 27 while the last trading day for options on the contract is Feb. 16.

March white sugar futures rose \\$3.60 or 1.0 percent to \\$381.30 per tonne.

Arabica coffee futures on ICE joined the advance with the market also regaining ground after a recent setback as crops in Brazil received much needed rains.

Dealers said there remained concern about the prospects for the 2015/16 crop as the overall level of rainfall this year remained low in many key areas.

"There have been rains in Brazil this year but they haven't been as strong as we would normally have expected," Smith said.

March arabica coffee rose 5.20 cents or 3.2 percent to \\$1.6590 per lb. The contract fell to a low of \\$1.5840 on Tuesday, the weakest level for the front month since July.

May robusta coffee futures were up \\$23 or 1.2 percent at \\$1,906 a tonne.