Sugar rises in London

Sugar futures rose on Thursday, boosted by a slightly weaker dollar and end-month fund buying with traders focused on the expiry of May raws on ICE. Cocoa prices were lower, with improving prospects for crops in West Africa weighing on the market, while coffee pared losses after rebounding off a key support level.
Dealers said volume in raw sugar was boosted by tidying up of positions on May ahead of its expiry later in the day. "The May end game will rightly hog the limelight today," Fortis said in a daily market comment. There was talk that up to one million tonnes of raws could be delivered against May with the bulk of the sugar possibly destined for India.
ICE July raw sugar futures rose 0.19 cent to 14.27 cents per lb by 1641 GMT, while London August white sugar ended $7.80 higher at $427.30 per tonne. Cocoa futures were lower, weakened partly by an improving production outlook. "Good rainfalls continue in West Africa, especially within Ivory Coast's cocoa belt.
Consequently there is growing talk of a good start of the 09/10 main crop setting," Barry Callebaut, the world's largest maker of chocolate products, said in a market report on Thursday. July cocoa on ICE settled $28 lower at $2,375 a tonne with July cocoa in London ending down 18 pounds at 1,707 pounds a tonne.
Cocoa and sugar dealers digested Cadbury's results and noted references to destocking, which they said signalled slow demand. "The results were not bad, but could have been better," one London cocoa trader said.
Cadbury reported a slow start to 2009 with sales up 2 percent in the first-quarter as a bumper Easter chocolate season failed to offset weak gum and candy sales, hitting its shares. Arabica coffee futures on ICE were lower but gains were trimmed after key support was tested but held firm.
July arabicas stood 1.55 cent lower at $1.1495 per lb after earlier falling to a low of $1.1395. Dealers noted the market held support around $1.14 per lb, basis July, on both Monday and Tuesday, with roasters buying picking up when prices dipped towards the lower end of the current trading range.
Robusta coffee futures eased slightly, weakened partly by origin selling, with the market's focus on tidying up and rolling forward positions on the May contract ahead of Friday's first tender day. The front month has moved to a discount of about $29 to July compared with a premium last week. July robustas ended $19 lower at $1,453 a tonne.