LONDON: Raw sugar futures on ICE were holding just above the prior session's eight-week low on Friday with excess supplies keeping the market on the defensive while cocoa prices climbed following a rise in second quarter grindings in Asia and North America.
SUGAR
October raw sugar was up 0.01 cents, or 0.1pc at 11.56 cents per lb at 1342 GMT, just above an eight-week low of 11.53 cents set on Thursday.
Dealers said the recent strength of Brazil's real was a supportive factor. The currency rose on Thursday to its strongest level since Feb. 28.
A strong real can deter producer selling, making dollar denominated prices less attractive in local currency terms.
Concerns about weak demand in Asia and potential exports in India have helped to drive sugar prices down during the last few days.
Dealers said recent large deliveries against July raws and August whites had reinforced concerns about excess supplies.
"Whilst there will be homes for some of this sugar, the question will be what will happen to that sugar received which still hasn't been placed at destination," Sucden Financial senior trader Nick Penney said.
Dealers said weekly CFTC data, to be issued later on Friday, is expected to show an increase in the speculative net short position.
The data shows the position at the close of business on Tuesday and a further increase in the net short is believed to have taken place in subsequent trading.
October white sugar was up $1.90, or 0.6pc, at $314.50 a tonne.
COCOA
September New York cocoa was up $51, or 2.1pc, at $2,491 a tonne.
Dealers said the market derived support from strong grindings data from Asia and North America.
Asia's second quarter cocoa grind rose 16.3pc in the second quarter to a record high, the Cocoa Association of Asia said on Friday.
The North American Q2 grind rose 3.7pc.
September London cocoa rose 19 pounds, or 1.0pc, to 1,852 pounds a tonne.
COFFEE
September arabica coffee was down 0.35 cents, or 0.3pc, at $1.0825 per lb.
September robusta coffee was unchanged at $1,427 a tonne.
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