Raw sugar, arabica coffee inch higher

NEW YORK/LONDON: Raw sugar futures on ICE rose on Wednesday, supported by stronger energy markets while arabica coffee firmed as it consolidated above last week's 13-year low.

SUGAR

May raw sugar settled up 0.03 cent, or 0.2 percent, at 12.81 cents per lb.

Oil prices were up on Wednesday and gasoline prices jumped following the release of data showing the largest drawdown in U.S. gasoline stockpiles in about a year and a half.

A rally in Brazilian ethanol in particular helped support sugar, as that can encourage cane mills in the country to produce more ethanol rather than sugar, said Michael McDougall, managing director at Paragon Global Markets in New York.

McDougall was also watching dry weather in parts of sugar-growing China, which could prompt imports.

Still, "highly visible producer pricing (supposedly mainly Thais) is continuing to put a cap on May at 12.80 and scale up from there," consultants Agrilion said in a note.

May white sugar settled down $1.50, or about 0.5 percent, at $326.70 a tonne.

The May contract, which expires Monday, was trading at about an $11 discount to August reflecting a lack of appetite to take delivery and ample supplies.

COFFEE

May arabica coffee settled up 0.60 cent, or 0.6 percent, at 94.25 cents per lb.

The market was consolidating above the 13-year low of 91.25 cents set last week, dealers said.

The market was underpinned by a firmer currency in top grower Brazil, which was at its strongest against the U.S. dollar in nearly three weeks. A stronger Brazilian currency can discourage producer selling.

May robusta coffee settled up $4, or 0.3 percent, at $1,424 a tonne.

Vietnam, the world's top robusta producer, exported 2.87 million 60-kg bags of coffee in March, up 49.5 percent from February, customs data showed.

COCOA

May New York cocoa settled down $3, or 0.1 percent, at $2,443 a tonne pulling back from the prior session's nine-month high of $2,451.

This was its second negative finish in 14 sessions.

The market remained in technically overbought territory on the relative strength index.

"I wouldn't be shocked if we had some sort of short-term correction," said one U.S. trader. "With the Ivory Coast crop higher than last year, how much more bullish can things be?"

Cocoa arrivals at Ivorian ports reached 1.660 million tonnes between Oct. 1 and March 31, CCC data showed, up about 10 percent year on year.

May London cocoa settled up 6 pounds, or 0.3 percent, at 1,810 pounds a tonne.