Raw sugar futures on ICE turned higher on Friday as Brazil's real currency rallied against a sagging US dollar. The recent depreciation in the real had triggered selling by system funds with dollar-denominated sugar prices correlated with the currency of the world's top producer.
A weak real means that growers in Brazil are to some extent shielded from any fall in international prices.
The currency's recent woes have added to an already bearish mood in a market that is oversupplied after several years in which production has exceeded demand.
May raw sugar was up 0.09 cents, or 0.7 percent, to 12.71 cents a lb at 1447 GMT, having earlier dipped to a six-year low for the front month of 12.39 cents.
Dealers said the rally could gain momentum if the front month could close above the 10-day moving average, which currently stands in the low 12.90s.
White sugar futures also turned higher, with May up $1.70, or 0.5 percent, at $365.40 a tonne.
Robusta coffee futures rose on concerns about dry weather in top producer Vietnam.
May robusta coffee futures were up $7, or 0.4 percent, at $1,822 a tonne. The contract had rebounded from a low of $1,685 a week ago to a peak on Thursday of $1,855.
"This (rebound) was partly thanks to concerns about a water shortage in Vietnam, the largest Robusta growing country, as this makes it difficult to carry out the necessary irrigation," Commerzbank said in a market note.
Dryness affecting the Central Highlands coffee belt is expected to last until mid-May or even early June, a senior state forecaster said on Friday.
May arabica coffee futures on ICE were off 0.65 cents, or 0.45 percent, at $1.4350 per lb, with the market falling back slightly after the contract hit a three-week high of $1.4675 during the previous session.
Cocoa futures were led higher by the New York contract, which was buoyed by the fall in the value of the dollar.
May New York cocoa rose $52, or 1.9 percent, to $2,767 a tonne, while May London cocoa was up a more modest 0.6 percent at 1,935 pounds a tonne.
Comments
Comments are closed.