Raw sugar steadies, held back by stronger dollar, weak technicals

LONDON: Sugar futures on ICE steadied on Thursday, held back by a strong dollar, weaker oil prices and bearish technical factors that prompted selling.

SUGAR

May raw sugar slipped 0.1% to 15.98 cents per lb at 1322 GMT.

The premium for the May contract over July has narrowed to its weakest since last October, meaning nearby supply availability is improving.

Dealers said sugar may test the recent lows of 15.85 cents given it has failed four times to break out on the top side of the range.

They added, however, that a wholesale price collapse seemed unlikely.

China, one of the world's top sugar buyers, imported 430,000 tonnes of sugar in February, up 90% versus a year ago, data showed.

May white sugar fell 0.2% to $457.70 a tonne.

COFFEE

May arabica coffee was flat at $1.3355 per lb, after rising to its highest since March 1 on Wednesday.

Underpinning coffee was a strengthening in the Brazilian real after the country's central bank delivered its first interest rate hike in nearly six years on Wednesday, with a larger-than-expected 75 basis point increase.

Elsewhere, dealers are keeping watch on the worsening COVID-19 situation in Brazil.

May robusta coffee fell 0.9% to $1,400 a tonne.

Coffee farmers in Vietnam, the world's top robusta producer, have been holding back from selling beans due to unattractive prices, while Indonesian premiums have also narrowed, traders said.

Weighing on robusta, the discount for May robusta over July is widening while more robusta is due to be graded for delivery against ICE futures, dealers noted.

COCOA

May London cocoa rose 0.8% to 1,726 pounds per tonne.

The May contract's premium to July has narrowed sharply in recent sessions, indicating nearby supply tightness might be easing.

May New York cocoa rose 0.8% to $2,554 a tonne.