ICE raw sugar futures rose on Tuesday, heading towards a recent nine month peak as funds covered short positions amid tightening supplies, while arabica hit a one year high.
March raw sugar was up 0.1 cents, or 1.2%, at 12.90 cents per lb at 1457 GMT, having hit a nine month peak of 13.01 on Friday.
Mills in India, a top sugar producer, churned out 1.9 million tonnes of sugar between Oct. 1 and Nov. 30, down nearly 54 percent from a year earlier.
The real strengthened, lowering the value of dollar-priced sugar in local currency terms and discouraging Brazilian producer selling.
Dealers said technical support was building around 12.75 cents, meaning prices could push back towards recent highs as funds cover short positions, although producer selling would cap the upside.
Speculators in ICE raw sugar cut their net short position by 15,007 contracts to 118,387 in the week to Nov 26.
Sucden Financial said it expected raw sugar would continue to trade sideways with a test of 13 cents in the near term.
"Market gossip has recently focussed more on Thai crop forecast revisions to the downside, sharp increases in domestic gasoline prices by Petrobras, flooding in EU beet areas and the sugar markets' sailing against the macro winds," it said.
March white sugar rose $3.40, or 1%, to $345.70 a tonne.
March arabica coffee was 2.1 cents, or 1.7%, higher at $1.2340 per lb, having hit a one-year high of $1.2445 as the real strengthened.
Speculators in ICE arabica coffee reduced their net short position by 11,246 contracts to 7,592 in the week to Nov. 26.
Arabica has been underpinned by the prospect of a deficit in 2019/20 and by worries that dry conditions could curb Brazil's 2020/21 crop.
Rabobank said traders had been scrambling to get hold of available certified stocks.
Honduran coffee exports rose 43.6% in November, coffee institute IHCAFE said, but added it expected the country to export 3% less coffee overall this season.
Costa Rican coffee exports slid 30% in November, marking 13 consecutive months of falls.
March robusta coffee rose $13, or 0.9%, to $1,424 per tonne.
March New York cocoa was up $8, or 0.4%, at $2,552 a tonne.
March cocoa is steadying after hitting a three week low on Monday in a technically driven retreat from a 1-1/2 year high set in mid-November.
Speculators in ICE New York cocoa increased their net long position by 3,210 contracts to 39,218 contracts in the week to Nov 26.
Port arrivals in both Ivory Coast and Ghana continue to run slightly behind last season's pace. March London cocoa fell 3 pounds, or 0.2%, to 1,857 pounds a tonne.
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