Softs up on weak dollar as futures rise

ICE sugar, arabica coffee and cocoa futures rose on a weaker dollar yesterday, with sugar bolstered by tight prompt Brazilian supplies and arabicas below a 34-year high touched earlier this month. Cocoa futures firmed, with a focus on the flow of exports from top producer Ivory Coast after a political crisis. Sugar edged higher, underpinned by tight new-crop availability from Brazil as mills maximised the crush of cane into ethanol, with an improving sugar supply outlook limiting gains. Producers such as Thailand, Pakistan and Brazil are expected to see increased output on the previous year. Sugar output in Brazil's centre-south in 2011-12 through May 1 fell 69 per cent from a year ago, as rains through mid-April hindered cane harvesting and mills prioritised ethanol production. Sugar production totalled 795,000 tonnes, down from 2.55 million tonnes in the same period last season, when harvesting started exceptionally early, data from the sugar cane industry association Unica showed on Thursday. "The recent Unica figures were widely read as potential for a strong tail end to the crop," said Thomas Kujawa of brokerage Sucden Financial. Dealers said ICE front-month raw sugar futures had shown strong support in recent days at 20.50 cents a pound. ICE July raw sugar futures were up 0.33 cent or 1.55 per cent to 21.66 cents a pound at 1109 GMT. Prices had fallen to an eight-month low of 20.40 cents on May 6. Liffe August white sugar traded up $4.10 or 0.7 per cent to $606.20 per tonne at 1110 GMT, above the eight-month low of $571.90 touched on May 5. from / Gulf News