LONDON: Raw sugar futures firmed on Tuesday, as light short-covering helped prices rise above 15-month lows touched last week, even as an enduring bearish outlook for global supplies capped gains. SUGAR
July raw sugar was up 0.10 cents, or 0.72 percent, at 13.99 cents per lb by 1114 GMT, after climbing to a session high of 14.09 cents.
Dealers said the market was supported by short-covering in light volume, after prices fell sharply over the last two weeks and dipped into oversold territory.
The market had attempted a short-covering rally in the previous session but stumbled when prices were unable to rise above key resistance levels, triggering selling into the rally.
"The funds still seem to be in sell mode," said Tom Kujawa of Sucden Financial. "It seems there is little else in the market for the sugar bulls other than the oversold nature of the price activity."
Despite expectations for ample global supplies next season, the market was monitoring weather in Brazil for signs that more rains could lead to further short-term disruptions to production.
Brazilian producers Copersucar and S?o Martinho both cut their expectations on Monday for sugar output for the centre-south cane region, with the latter noting rains could reduce the cane crush.
Iranian state purchasing agency the Government Trading Corporation of Iran (GTC) is tendering to buy 60,000 tonnes of raw cane sugar, European traders said on Tuesday.
August white sugar rose $1.50, or 0.36 percent, to $414.40 a tonne.
COCOA
Cocoa futures consolidated, with July New York cocoa rising $7, or 0.35 percent, to $1,995 a tonne and July London cocoa gained 6 pounds, or 0.39 percent, to 1,547 pounds a tonne.
Futures fell sharply in the previous session before recovering, but still closed in negative territory.
Cocoa arrivals in top grower Ivory Coast reached about 1,631,000 tonnes by June 4, exporters estimated on Tuesday, up 21 percent from the same period of the previous season.
COFFEE
July arabica also consolidated, gaining 0.40 cents, or 0.31 percent, to $1.2885 per lb.
The contract surged in late trading on Monday on the back of short covering and forecasts for colder weather ahead for parts of Brazil, the world's largest coffee producer.
July robusta rose by $1, or 0.05 percent, to $2,016 a tonne.
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