SOFTS-Raw Sugar Futures Steady as Dollar Strong, Brazil Supplies Cap Market


LONDON, April 28 (Reuters)Raw sugar futures stabilized on Thursday but remained close to a month low on Wednesday under pressure from a firm dollar and a good supply outlook from Brazil’s main producer.

SUGAR

* Can raw sugar SBc1which expires on Friday, edged up 0.1% to 19.03 cents per pound at 11:08 GMT, after hitting its lowest level since March 18 at 18.80 cents on Wednesday.

* The dollar index hit its highest level in five years against a basket of currencies on Thursday. A stronger US currency makes dollar commodities like sugar more expensive for non-US investors. XRF/

* Dealers said a lack of interest in selling or buying from the trade gave undue influence to macro factors such as the dollar. They expect sugar to remain in a range between 18.50 and 19.50 cents for now.

* On the supply side, the Brazilian government expects sugar production to increase by 15% in the new season and ethanol production to decline.

* Further on, Rabobank said it expects sugar prices to average 19.60 cents in the third quarter, from 19.30 cents in the second, given potential disruptions to Russian energy exports , global fertilizer shortages and tensions related to the upcoming Brazilian elections.

* August white sugar LSUc1 fell 0.6% to $520.40 a tonne.

COFFEE

* July arabica coffee KNc2 rose 0.3% to $2.1625 a pound, after hitting the lowest level since March 30 at $2.1455 on Wednesday.

* “Demand is the main concern (in coffee). Growing risks of a protracted war and recession in Europe call for caution, especially given sky-high prices and a drop in disposable income “, Rabobank said in a note.

* July robusta coffee LRCc2 fell 0.1% to $2,031 a tonne.

COCOA

* July Cocoa New York CCc2 rose 0.2% to $2,542 a tonne, recovering some ground after Tuesday’s drop to an eight-week low of $2,478.

* Cocoa, like coffee, is under pressure due to concerns over weak demand.

* Cocoa July London LCCc2 rose 0.7% to 1,795 pounds per ton.

(Reporting by Maytaal Angel editing by David Goodman)

((maytaal.angel@thomsonreuters.com(00442075429105)(Reuters email: maytaal.angel.thomsonreuters.com@reuters.net)))

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