Raw sugar pares steep losses

Raw sugar futures on ICE pared losses on Thursday, while arabica coffee fell more than 3 percent, after both markets turned sharply lower on broad profit-taking and a firming US dollar. Cocoa prices bucked the session's trend and held their gains, with the London market rising to a four-month high, supported by concerns that top grower Ivory Coast may harvest a small, poor quality mid-crop this season. New York prices reached a five-week top.
Raw sugar prices made a technically bullish move on Wednesday but only managed to match the prior session's high at 15.93 cents, with pressure coming from sharply lower Chinese import data for March.
Both sugar and coffee markets tumbled on profit taking as the 19-market Thomson Reuters CoreCommodity Index changed direction and fell 1.2 percent after reaching a 4-1/2-month high as the US dollar came off its lows.
July raw sugar settled down 0.02 cent, or 0.1 percent, at 15.79 cents per lb while August white sugar settled up $1.70, or 0.4 percent, at $458.20 per tonne.
Additional pressure came from a forecast for some rain in top grower Brazil's sugar region while dealers widely expected industry group Unica to release a bearish report next week.
"The break in the dry weather could be somewhat negative. A dry stretch is good only up to a point," said Michael McDougall, director of commodities for Societe Generale in New York.
Arabica formed an outside reversal lower, a potentially bearish flag marked by a move well above the prior session's high and settlement below its low. July arabica futures settled down 4.6 cent, or 3.6 percent, at $1.241 per lb, their biggest drop in 2-1/2 months after trading in a wide 7.35 cent range.
July robusta futures settled down $11, or 0.7 percent, at $1,567 per tonne.
July London cocoa settled up 17 pounds, or 0.8 percent, at 2,262 pounds per tonne, after rising to 2,270 pounds, the highest level since mid-December.
The mid-crop season in Ivory Coast began this month and a prolonged dry season has so far dampened the supply of beans from the bush.
"People have concerns about the impact that dry weather will have had on quality," one cocoa dealer said, adding it would also reduce total production in the world's top grower.
July New York cocoa settled up $17, or 0.6 percent, at $3,107 per tonne, after rising to a five-week high at $3,138.