NEW YORK/LONDON: Raw sugar futures rose on Monday while arabica coffee firmed slightly, boosted partly by renewed strength in Brazil's real currency that could potentially slow producer selling in the world's top grower of both commodities.
Dealers said short-term sugar supplies, however, continued to be boosted by a strong pace of crushing in the key center-south region of Brazil.
Industry group Unica on Monday said the cumulative crush in Brazil's center-south region was running 13 percent above last year's pace so far this season.
"There is no sign of any shortage of sugar and there are still discounts on nearbys," one dealer said, noting front month October raws remained at a discount of almost 50 points to March.
ICE Oct raw sugar settled up 0.27 cent, or 1.37 percent, at 19.98 cents per lb, rebounding from an early low of 19.54 cents.
Dealers noted funds, who continue to hold a large net long position, were also buying as they sought to keep the market above key support around 19.50 cents.
"(In) the short term, market action recently has been mainly technical with little influence from changing fundamentals as the funds increase and decrease their large net long," said Agrilion Commodity Advisers in a note.
Speculators increased their net long position in raw sugar futures and options for the first time in seven weeks, in the week ended July 5, US government data showed late on Friday.
"The funds are trying to get it away from the 50 area because there are big (sell) stops below 19.50," one dealer said, adding the stronger real may also have encouraged some fund buying.
October white sugar settled up $6.20, or 1.2 percent, at $540.30 per tonne.
Arabica coffee futures also rebounded after earlier dipping to a seven-week low at $1.398, with December closing up 0.2 cent, or 0.1 percent, at $1.4055 per lb.
Dealers said the market's downtrend appeared to have temporarily run out of steam although fundamentals remained bearish with supplies boosted by a better-than-expected harvest in top producer Brazil.
September robusta coffee settled down $2, or 0.1 percent, at $1,801 per tonne.
Cocoa futures were higher, with traders noting underlying support from tightening supplies.
December New York cocoa settled up $34, or 1.1 percent, at $3,015 per tonne, while December cocoa in London settled up 39 pounds, or 1.6 percent, at 2,417 pounds per tonne.
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