Raw sugar climbs further as technicals firm, cocoa stumbles

LONDON: Raw sugar futures rose on Friday, boosted by firmer technicals, while New York cocoa slumped to near a three-week low on chart-based selling and worries about ample supplies.

SUGAR

May raw sugar was up 0.21 cent, or 1.28 percent, at 16.66 cents a lb by 1133 GMT.

The market was technically supported, after prices closed 2.17 percent higher the previous session.

"The market did not trade down to significant new lows on the day and so avoided poking the weak momentum bear," said Tobin Gorey of the Commonwealth Bank of Australia. "Buyers notably emerged at similar levels again to stabilise the market - for now."

However, dealers noted momentum was fragile amid expectations for a global surplus in the coming 2017/2018 season.

In Brazil, where harvesting is underway, good weather has diminished prospects of transport disruptions and fuelled the bearish outlook.

May white sugar rose $6.80, or 1.44 percent, to $480.40 per tonne, further supported by a weak pound, which was heading for its first weekly loss in four.

The May white sugar premium over May raw sugar widened sharply on Friday to $113, signalling a renewed boost to refining margins. This was near an 11-month high of $115 for the front month, touched in early March.

COCOA

Cocoa futures fell, with July New York cocoa down $38, or 1.82 percent, to $2,052 a tonne.

July London fell 21 pounds, or 1.25 percent, to 1,659 pounds a tonne.

These levels were the weakest in both markets since March 20.

"We had a soft close last night, which probably didn't help," said one dealer. "The market found some follow-though, as well as some new selling on weaker action and some long liquidation."

Dealers also noted good volumes as the New York market inched towards first notice day on April 17.

The market remained under pressure by enduring worries about over-supply, especially from top producer Ivory Coast.

In Ghana, the world's second largest grower, cocoa purchases declared to industry regulator Cocobod rose 4 percent from the same time last year, data showed.

COFFEE

May arabica coffee fell 0.80 cent, or 0.58 percent, to $1.3695 per lb.

May robusta was unchanged at $2,143 a tonne.