LONDON: Raw sugar prices on ICE recovered on Monday, having hit their lowest in 7-1/2 months on Friday as the Brazilian real sank, while coffee prices also rose.
The Brazilian real was little changed after dropping to its weakest in eight months on Friday.
A weaker real boosts returns in local currency terms for dollar-denominated commodities and can, therefore, encourage producer selling.
SUGAR
July raw sugar rose 0.11 cents, or 1pc, to 11.66 cents per lb at 1402 GMT after falling to 11.43 cents on Friday, its lowest in 7-1/2 months.
July sugar fell 1.5pc last week for its fourth consecutive negative weekly finish.
"For the time being the weak real is dominating. People are worried maybe Brazil's new government won't succeed with their reforms," said Stefan Uhlenbrock, analyst at F.O. Licht.
He added, however, that sugar prices are unlikely to head much lower in the near term, given the large net short position held by speculators.
In the week to May 14 speculators increased their net short position in ICE US raw sugar futures to its highest since September.
"They are probably, currently, over 170,000 net short (positions) after Friday's sell-off. Some correction is likely," a dealer said.
The European Union's crop monitoring service MARS estimated the EU sugar beet crop yield this year at 76.5 t/ha, down from 77.1 t/ha in April.
August white sugar rose $2, or 0.6pc, to $323.50 a tonne.
COFFEE
July arabica coffee futures were up 1.1 cents, or 1.2pc, at 90.05 cents per lb.
In the week to May 14 speculators reduced their bearish stance in ICE US arabica coffee futures by 4,885 lots to 73,321 lots.
Coffee supplies remain ample after a record Brazilian crop last year, though a smaller harvest is expected in 2019, an off-year in the country's biennial crop cycle.
Ecuador's 2019/2020 soluble coffee exports are expected to drop 10pc from the 2018/19 season as processing costs climb and farmers pivot to growing specialty beans.
July robusta coffee rose $27, or 2.1pc, to $1,328 a tonne.
COCOA
July London cocoa fell 6 pounds, or 0.4pc, to 1,723 pounds a tonne.
In the week to May 14 speculators cut their net short position in ICE US cocoa futures by 6,618 contracts to 21,810 contracts.
Cocoa arrivals at ports in top grower Ivory Coast reached 1.934 million tonnes between Oct. 1 and May 19, exporters estimated, up about 14pc from the same period last season.
Ghana's graded and sealed cocoa arrivals reached 726,130 tonnes between Oct. 1 and May 2, versus 722,182 in the same period last season.
July New York cocoa rose $4, or 0.2pc, to $2,357 a tonne.
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