ICE raw sugar futures extended their gains and hit a four-month high on Friday, with March's steep premium over the May contract easing slightly, while cocoa consolidated in mixed dealings and coffee rose. Raw sugar felt a lift on concerns about nearby supplies, rising energy prices and the weak US dollar after the euro gained against the greenback after this week's bailout deal for Greece and better-than-expected German data.
"There are logistical issues in Europe and Brazil is in between seasons. Apparently Thailand is selling most of their stock to China, and India is also having some logistical issues," said Jack Scoville, a vice president at The Price Group in Chicago.
March raw sugar on ICE March raw sugar futures ended up 0.25 cent, or 1 percent, at 26.19 cents per lb, the highest close since October 27. Benchmark May closed up 0.36 cent, or 1.5 percent, at 25.22 cents per lb, its highest settlement since November 8. Dealers monitored the front-month premium, which indicated the potential for a large delivery. There was also a widening premium for May over July.
"The implication is that, should the expected large receiver of the March commit to the tonnage and has a home for it, this would absorb available sugars for the May delivery," Nick Penney at broker Sucden Financial said in a market note. ICE March raw sugar futures closed at a 0.97 cent premium to May, down from 1.08 cents at Thursday's close. London May white sugar futures rose $9.20, or 1.4 percent, to settle at $661.40 per tonne.
Cocoa futures on ICE were slightly higher, with May closing up $13 at $2,357 a tonne. March closed at a $13 premium to May, narrowing from $27 on Thursday. The GEPEX group of exporters, which accounts for about 55 percent of Ivory Coast's cocoa exports, has agreed to end its boycott of auctions, three industry sources told Reuters on Thursday.
"GEPEX recognises that the system remains in its early stages and there are a number of significant financial and operational concerns that still need to be resolved," the group said in a statement.
Robusta coffee futures on Liffe were firm, with May closing up $38, or 1.9 percent, at $2,056 a tonne, a 2-1/2 month high. Certified coffee stocks held in NYSE Liffe nominated warehouses fell to 210,490 tonnes as of February 20 from 226,690 tonnes on February 6, exchange data showed. May arabica coffee gained 1.55 cents to close at $2.0360 per lb, an inside day.