02:01 25Mar11 -SOFTS-Sugar surges on Brazil rains, others stumble
* Brazil rains disrupting early 2011/12 cane harvest
* Pressure mounts on U.N. to stop violence in Ivory Coast
NEW YORK/LONDON, March 24, 2011 - Sugar futures bounded higher on Thursday on concern about delays to the harvest in top producer Brazil, but cocoa fell and coffee wound up mixed.
"Since the second half of February, cloudy and rainy conditions have also affected cane growth and this, added tothe drought damage suffered at the end of last season, may have a negative impact on productivity at the start of the harvesting season," Sucden Financial said in a market note. Sterling Smith, senior analyst at brokers Country Hedging Inc in Minnesota, said it was uncertain "how much" damage the rains could inflict on the harvest of Brazil's center-south cane areas, the premier sugar-growing region of the world, or what kind of delays the market was looking at in the harvest.
New York's May raw sugar futures jumped 0.87 cent to finish at 27.45 cents per lb. London's May white sugar gained $18.20 to close at $706.10 per tonne.
Forecaster Telvent DTN reported showers continuing across cane areas of Brazil. Rains have hindered the country's early harvest, providing bullish fuel for the market.
Prices have slid on growing supplies as the tail of the Thai crop has exceeded expectations and India has agreed to allow 500,000 tonnes of unrestricted exports.
"News that India has given the go-ahead for 500,000 tonnes of sugar exports earlier this week has weighed on prices," Barclays Capital said in a report on Thursday.
"Supply increases look likely on indications of higher Thai production, increased 2011/12 Brazilian production and the likelihood of an expansion in sugar acreage in India," it
added.
COCOA SINKS AND COFFEE MIXED
Cocoa futures slipped although bullish factors were seen limiting losses in the market.
Pressure mounted on the United Nations to toughen its stance in Ivory Coast as a violent post-election conflict in the West African cocoa producer veered toward all-out civil war.
New York's May cocoa futures fell $48 to conclude at $3,203 per tonne. London's May cocoa contract shed 15 pounds to close at 2,074 pounds per tonne.
Arabicas, on the other hand, were supported by tight supplies of high-quality washed beans.
The premium of the spot robusta coffee contract over the back months in London climbed to around $150 on Thursday, up from about $120 at the close on Wednesday but remained shy of its peak of more than $200 last week.
It has been boosted by concern about a possible shortage of available supplies to deliver against the May contract.
ICE May arabica coffee dropped 2.80 cents to end at $2.658 per lb. London May robustas bucked the weakness by rising $31 to finish at $2,569 per tonne.----
