Arabica coffee pares gains as Brazilian currency turns lower

Arabica coffee futures on ICE pared gains on Thursday as the Brazilian real turned negative against the US dollar and the market was unable to break out of a two-week trading range, awaiting direction.
Cocoa eased as abundant global supplies kept the market in a bear market, while sugar was mixed.
May arabica settled up 0.55 cent, or 0.4 percent, at $1.4145 per lb, having touched a session high of $1.439.
Dealers said the market was supported by firmer technicals and major overnight gains in the Brazilian real, though arabica futures fell from their highs as the real turned lower against the US dollar.
May robusta settled up $3, or 0.1 percent, at $2,183 per tonne.
Brazil's food supply agency Conab will organise an auction to allow coffee processors to bid for locally produced robusta as the government tries to help roasters and instant coffee producers find supplies.
May London cocoa settled down 32 pounds, or 1.9 percent, at 1,651 pounds per tonne. The March contract expired at the end of the session, with little liquidity in the contract.
May New York cocoa settled down $21, or 1 percent, at $2,027 per tonne.
The cocoa markets fell for the second straight session, after touching their highest in more than five weeks, as the short-covering rally waned.
Dealers said the markets remained in downward trends and the three-day jump above multi-year lows was a corrective bounce.
An International Cocoa Organisation official said late Wednesday that the global cocoa sector could face a structural surplus in the coming years.
May raw sugar settled up 0.02 cent, or 0.1 percent, at 18.25 cents per lb, after rallying to 18.53 cents.
Traders noted that the benchmark contract failed to hold above 18.50 cents for the third time in the past seven sessions after last week's slump. This was viewed as technically weak, though 18 cents was proving to be good support.
Prices were supported earlier by the strong real, which dampens the appeal of sugar for Brazilian producers and erodes its advantage over ethanol.
May white sugar settled down $3.50, or 0.7 percent, at $510.30 per tonne.
Dealers eyed the declining May white sugar premium over August to $8, from $8.70 on Wednesday, as well as spot white sugar at around $108 over spot raws.