LONDON: Raw sugar prices fell on Friday amid risk-off sentiment in wider financial markets and a stronger dollar, though near term supply tightness limited losses. May raw sugar fell 1.5% to 16.12 cents per lb at 1514 GMT, having gained 2.4% on Thursday.
Dealers said sugar was consolidating and should remain range bound between 16 and 16.50 cents near term, underpinned by a poor harvest in Thailand, slow Indian exports and uncertainty over the upcoming Brazilian crop. Sugar's upside is capped, however, by widespread bets the market will eventually move into surplus this year.
May white sugar fell 0.9% to $458.80 a tonne, having gained 2.2% on Thursday. May arabica coffee fell 0.1% to $1.3220 per lb, having gained 1.1% on Thursday. Brazil's real currency is recovering after its recent fall to 10-month lows against the dollar.
A stronger real reduces dollar-denominated coffee prices in local currency terms in top producer Brazil and can deter producers from selling. A generally weak real has led coffee prices to slip back steadily since late February when they hit a one year high on concerns over the upcoming Brazilian crop.
May robusta coffee was down 0.6% at $1,410 a tonne. May London cocoa slipped 0.3% to 1,772 pounds per tonne. May New York cocoa fell 0.9% to $2,571 a tonne.
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