Raw sugar futures regain some ground after sell-off

Raw sugar futures on ICE were higher on Friday as the market began to edge up again after the previous session's tumble from the strongest levels for 18 months. London cocoa futures were lower as the market extended its retreat from a 2016 peak set last Friday, while coffee prices strengthened. Dealers said sugar market fundamentals remained supportive despite a short-term supply boost from the strong start to the harvest in Centre-South Brazil.
"There is no change in the medium/ long term outlook. Ever increasing deficits are forecast for this season and the next," Sucden Financial senior trader Nick Penney said. ICE July raw sugar was up 0.09 cents or 0.6 percent at 15.93 cents a lb at 1408 GMT. The front month rose to peak of 16.87 cents on Thursday, its highest since October 2014, before reversing direction and ending nearly 5 percent down on the day.
August white sugar was off $1.00, or 0.2 percent, at $460.20 a tonne. London cocoa futures were lower as the market extended this week's decline after surging last Friday to the highest levels this calendar year. "Weaker longs are selling a bit," one London dealer said, noting some speculators were scaling back long positions taken during the market's recent run-up.
The market remains underpinned by a slow start to the mid-crop in top grower Ivory Coast, with weekly data on port arrivals likely to be watched closely. London July cocoa was down 39 pounds, or 1.7 percent, at 2,248 pounds a tonne. The second month rose to a peak of 2,319 pounds a week ago, its highest since December 8.
New York July cocoa was off $73, or 2.3 percent, at $3,085 a tonne. Arabica coffee were higher with the market boosted partly by a further slight strengthening in Brazil's real currency. Recent gains of the real against the dollar - as markets anticipate the removal of President Dilma Rousseff from office - may induce coffee farmers to rebuild record low stocks and export less.
July arabica coffee rose 2.85 cents, or 2.35 percent, to $1.2435 per lb. Robusta coffee futures also firmed, boosted by concerns that drought is likely to curb production in Vietnam. July robusta coffee was up $31, or 1.9 percent, at $1,648 a tonne.