NEW YORK/LONDON: Raw sugar futures on ICE edged up for a second session on Monday, supported by higher oil prices, while coffee prices slid despite a firmer currency in top grower Brazil.
SUGAR
* May raw sugar settled up 0.11 cent, or 0.90 percent, at 12.29 cents per lb. The front month dipped to a two-month low of 12.08 cents on Thursday.
* Sugar futures got some support from firmer oil prices, which rose 1 percent on comments from Saudi Energy Minister Khalid al-Falih that an end to OPEC-led supply cuts was unlikely before June.
* Higher oil prices can encourage cane mills in top grower Brazil to produce more ethanol rather than sugar.
* Prices have largely been rangebound for the past few weeks, with producer selling accelerating at 13 cents and support around 12 cents.
* Brazil should seek a tariff-free sugar quota agreement with the United States similar to the tariff-free ethanol quota it offers to US exporters of the biofuel, the new head of Brazil's powerful cane industry group Unica said.
* May white sugar settled up $2, or 0.6 percent, at $340.50 per tonne.
COFFEE
* May arabica coffee settled down 1.3 cent, or 1.3 percent, at 97.20 cents per lb after trading within the previous session's range.
* Prices remain pressured by plentiful global supplies, especially from top grower Brazil.
* Futures fell despite a stronger currency in Brazil. The two have frequently moved in tandem of late, as a stronger currency can discourage producer selling of dollar-denominated commodities like coffee.
* Speculators raised their net short position in ICE arabica coffee to the largest since mid-October in the week to March 5.
* "Speculative sentiment remains at low but not extreme levels, meaning prices have the potential to head even lower (over the coming weeks)," ratings agency Fitch said.
* Americans are consuming more gourmet coffee than ever, but the outlook for future growth may be threatened by increasing economic worries.
* May robusta coffee settled up $2, or 0.1 percent, at $1,532 per tonne.
COCOA
* May New York cocoa settled up $4, or 0.2 percent, at $2,202 per tonne, pulling away from last week's 2-1/2 month low.
* May London cocoa settled down 5 pounds, or 0.3 percent, at 1,666 pounds per tonne.
* Cocoa arrivals at ports in top grower Ivory Coast reached 1.587 million tonnes between Oct. 1 and March 10, exporters estimated on Monday, up about 10 percent year on year.
* Below average rainfall in Ivory Coast has raised concerns about the April-to-September mid-crop.
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