Prices were hovering close to this week's five-week peak of 12.94 cents, with dealers pointing to speculative chart-based buying as the key supportive factor on Friday. Dealers said that funds were testing resistance levels and a break above these could pave the way for further gains.
Market participants also continued to monitor India, which has lagged in exporting a large surplus. The country is now expected to export only 2.5 million to 3.5 million tonnes of sugar, far below its initial 5 million tonne target. "This is no doubt due to the slow pace of sales and of negotiations," Marex Spectron said in a note. "Time has gone by and logistics simply make large exports tougher."
The Indian government is considering raising the minimum selling price of sugar, a television news channel reported on Friday. Marex Spectron noted that the possibility for higher minimum prices is further diminishing the incentive for mills to export. March white sugar rose by $2.40, or 0.7 percent, to $346.50 a tonne.
March arabica coffee fell by 1.40 cents, or 1.3 percent, to $1.0285 per lb, pressured by a weaker Brazilian real. A softer currency in top producer Brazil improves local returns on dollar-traded goods such as coffee, encouraging producers to sell. Speculators remained in control, dealers said, adding that the buying that had lifted prices to a five-week peak this week is now petering out.
"The indicators favour the upside but ... buying pressure has waned," said Sucden Financial technical analyst Geordie Wilkes. March robusta coffee was up $1, or 0.1 percent, at $1,537 a tonne. May London cocoa fell by 2 pounds, or 0.12 percent, to 1,737 pounds a tonne.
March New York cocoa dropped $13, or 0.6 percent, to $2,356 a tonne. Farmers in top cocoa grower Ivory Coast say the current crop is worsening, with beans starting to rot because of a lack of financing that is preventing them from properly fermenting and drying beans already stressed by bad weather.