Raw sugar futures recovered on Friday, lifted by short covering after touching a three-month low, while New York cocoa surged on a weaker dollar and chart-driven buying. May raw sugar futures were up 0.26 cent, or 1.44 percent, at 18.26 cents a lb by 1510 GMT, after dipping to their weakest since December 16 in earlier trade. Futures were boosted by short-covering, although trade was choppy and technicals remained fragile.
"I think the funds have got bored waiting (for India to import) and have thrown in the towel," one dealer said. "And there's been so many negative technical signals, which have accelerated the move downward." Brazil's center-south region produced 20,000 tonnes of sugar in the second half of February, compared to 9,000 in the previous two-week period, cane industry group Unica said on Friday.
The United States and Mexico will launch a new round of negotiations to resolve a trade dispute over Mexico's sugar exports to the United States, senior officials in both governments said on Friday. May white sugar also rose $3.80, or 0.75 percent, to $513.70 a tonne, but remained near the 2-1/2 month low of $509.50 touched in the previous session.
May New York cocoa rose $53, or 2.79 percent, to $1,951 a tonne. Futures ended the previous session near 9-1/2 year lows hit last week amid oversupply worries. The market was supported on Friday by a weaker dollar and positive technicals, after prices climbed over the 10-day moving average. Dealers said trading remained volatile and technically-driven, although sentiment has improved slightly on forecasts for an El Nino and weather concerns in top grower Ivory Coast.
May London cocoa also rose 42 pounds, or 2.67 percent, at 1,579 pounds a tonne. May arabica rose 1.10 cents, or 0.78 percent, to$1.4155 per lb, while May robusta climbed $6, or 0.27 percent, to $2,188 a tonne. Brazil exported 15 percent less green coffee in February compared to last year in part due to slower sales by farmers waiting for better prices, exporters association Cecafa said. Robusta exports declined more than 80 percent.
However, ample February rains in Esparito Santo have improved the condition of trees and boosted the outlook for Brazil's top robusta producing state. The improvement could increase robusta production by as much as 20 percent in the state this year and could set the stage for a stronger recovery in 2018.
Published under arrangements with Reuters.
No content from Business Recorder shall be reproduced, published, broadcast, rewritten for broadcast or publication, or redistributed directly or indirectly in any medium.
Business Recorder shall not be responsible or held liable for any error of fact, opinion or recommendation and also for any loss, financial or otherwise, resulting from business or trade or speculation conducted, or investments made, on the basis of the information posted here. Nor shall Business Recorder be held liable for any actions taken in consequence." >Copyright Reuters, 2017