Raw sugar edges up, set to post large weekly loss

LONDON: Raw sugar futures on ICE edged away from the prior session's near two-month low on Friday but remained on track for a large weekly loss with a strong dollar and improving crop conditions in several countries putting the market on the defensive.

SUGAR

July raw sugar rose by 0.07 cent, or 0.5%, to 16.62 cents per lb by 1058 GMT. The front month dipped to a low of 16.52 cents set on Thursday - the weakest since April 20.

The July contract was on track for a weekly loss of about 5.2% weighed primarily by losses across a wide range of commodity markets including grains and metals driven partly by a stronger dollar.

"Any calibration to sugar's micro-fundamentals will have to wait until this macro-quake and any aftershocks end," Commonwealth Bank of Australia analyst Tobin Gorey said.

Improving crop outlooks in India and Thailand following favourable rains and the strong pace of production in Brazil during the second half of May had, however, also contributed to the recent weakness in prices.

August white sugar rose by $2.0, or 0.5%, to $427 a tonne.

Egypt has strategic sugar reserves to cover consumption for 5-1/2 months, the cabinet said on Friday.

COFFEE

September arabica coffee rose by 1.0 cent, or 0.7%, to $1.5260 per lb.

The September contract was on track for a weekly loss of about 4.4% as coffee prices fell in conjunction with many other commodities.

The return of rains in top producer Brazil has also improved the outlook for next year's harvest while coffee is also now flowing out of Colombia after recent disruption linked to anti-government protests.

September robusta coffee rose by $21, or 1.3%, to $1,619 a tonne.

COCOA

September New York cocoa rose by $16, or 0.7%, to $2,397 a tonne. The contract is on track for a small weekly loss of 0.2%.

September London cocoa rose by 8 pounds, or 0.5%, to 1,636 pounds a tonne.