Raw sugar dips

Raw sugar futures on ICE fell more than 2 percent on Thursday, pressured by the weak currency in top grower Brazil ahead of the spot contract's expiry at the end of the month, while whites extended losses to a 4-1/2-month low. Cocoa futures rose to one-month highs as chart-based signals grew increasingly positive, while coffee fell. The weaker Brazilian real increased incentives for Brazilian sugar producers to sell, while dealers turned their attention to the next futures expiry on February 29.
"There is plenty of sugar that can be delivered. It's a question of whether someone has the outlets for it," a senior European physical trader said. Nick Penney, a senior trader with Sucden Financial Sugar, said, "The March New York will hold everyone's attention and we will have the usual jockeying for position ahead of expiry." May raw sugar settled down 0.3 cent, or 2.3 percent, at 12.85 cents per lb.
Cash premiums of north-northeast Brazilian raw sugar have surged due to contracted sales of at least 300,000 tonnes of quota sugar to EU refineries and allocation of most drought-hit cane to ethanol. "The sugar market right now is a perfect storm for a bear market," said Bob Haberkorn, senior market strategist at RJO Futures in Chicago. "There are currency issues in Brazil, more production and good weather." White sugar futures fell for the third straight day after a large delivery against Friday's March whites expiry.
May white sugar settled down $3.50, or 0.9 percent, at $369.90 per tonne, after falling to $369.40, the lowest since early October. London March cocoa settled up 36 pounds, or 1.7 percent, at 2,109 pounds per tonne, the highest settlement since January 19. Traders continued to focus on higher-than-expected bean arrivals in top grower Ivory Coast and crop weather concerns. New York May cocoa settled up $38, or 1.3 percent, at $2,918 per tonne.
Arabica coffee eased as dealers awaited new market fundamentals and focused on further expected drawdowns of US certified stocks due to high cash premiums in producing countries. May arabica coffee settled down 0.5 cent, or 0.4 percent, at $1.161 per lb. May robusta futures settled down $14, or 1 percent, at $1,428 per tonne.