Raw sugar futures rose on Thursday as the market regained some ground after the previous session's fall to a six-week low while London cocoa was lifted by weakness in sterling. March raw sugar rose 0.20 cent, or 1.6 percent, to 12.85 cents per lb by 1455 GMT, rebounding from the previous session's six-week low of 12.53 cents.
Dealers said the market had derived support from concerns about India's crop although overall supplies remained ample. India is likely to produce 7.4 percent less sugar than forecast earlier, with mills reporting a sharp drop in sugar cane yields because of drought and white grub infestations, a senior industry official told Reuters.
"We still see no reason for a major move to the upside despite revisions in India's expected production," said Sucden Financial senior trader Nick Penney. "The campaign is at a very early stage there and whilst there are documented issues with grub pest and reduction in yields, production there will still be very high and add to the existing high stock situation."
March white sugar rose $0.80, or 0.2 percent, to $346.30 a tonne. Dealers said that about 350,000 tonnes of sugar was expected to be tendered against the December whites contract, which is due to expire on Thursday. Indian sugar is expected to feature.
Germany's second-largest sugar refiner, Nordzucker, is in talks to buy Australian producer Mackay Sugar, a Nordzucker spokeswoman said on Thursday. March London cocoa rose 37 pounds, or 2.3 percent, to 1,656 pounds a tonne, boosted by the weakness of sterling.
The pound fell to a session low versus the euro on Thursday after the Telegraph newspaper said that pro-Brexit Conservative MP Jacob Rees-Mogg will submit a letter of no confidence in British Prime Minister Theresa May. March New York cocoa was up $39, or 1.7 percent, at $2,248 a tonne, largely recouping the prior session's steep losses.
January robusta coffee was up $2, or 0.1 percent, at $1,665 a tonne, with a pick-up in the pace of the harvest in top robusta producer Vietnam keeping a lid on prices. Domestic prices in Vietnam dropped this week as supplies rose.
"Supplies from Vietnam are expected to increase over the coming weeks as farmers are speeding up their harvest," a trader in Dak Lak province said. March arabica coffee was down 0.70 cents, or 0.6 percent, at $1.1550 per lb.
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