Raw sugar futures on ICE were higher on Friday boosted by fund short covering but gains were capped by the prospect of a second consecutive global surplus in the 2018/19 season. March raw sugar was up 0.12 cent, or 0.9 percent, at 13.49 cents per lb by 1449 GMT.
Dealers said a short covering rally had helped the market pull away from a 3-1/2 month low of 13.02 cents set on Jan. 18 but producer selling was likely to limit the scope for any rebound in prices. The world sugar market is poised for a larger surplus than previously expected in the 2017/18 season, likely followed by another year of oversupply, a Reuters survey of 12 traders and analysts showed.
"Perspective for sugar remains heavy for now with large production prospects, leading to growing stocks and a subsequent increase in export availability, or a decrease in imports. This will ultimately lower the range," Sucres and Denrees Group (Sucden) said in a quarterly report.
March white sugar rose $0.80, or 0.2 percent, to $356.40 per tonne. India's sugar output is likely to jump 33 percent from a year ago to 27 million tonnes in the 2017/18 marketing year, giving the world's second-biggest producer enough surplus for overseas sales, Rahil Shaikh, managing director of ED&F Man India, said on Friday.
March London cocoa rose 17 pounds or 1.2 percent to 1,425 pounds a tonne. Prices have risen around 100 pounds from a low last week of 1,329 pounds. Dealers said the market had been supported by technically-driven buying and a diminished crop outlook in Ghana following dry weather.
Overall supplies, however, remain ample. "Despite strong grinding numbers, especially in Europe, a record 2016/17 West African season and a strong start to the ongoing 2017/18 season will keep markets well-supplied and prevent a significant move higher," BMI Research said in a report on Friday. March New York cocoa climbed $18, or 0.9 percent, to $2,035 a tonne.
March arabica coffee fell 0.85 cents, or 0.7 percent, to $1.2055 per lb. Honduran coffee exports grew 32 percent in January compared with the same month last year as delayed December shipments were released following a disputed election that provoked highway blockades, national coffee institute IHCAFE said on Thursday. March robusta coffee was down $8, or 0.45 percent, at $1,761 a tonne.
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