SOFTS-Sugar at 3-week high on spread rally; arabica tumbles

miércoles 8 de abril de 2015 13:53 GYT

* Raw sugar open interest at June 2013 high

* Spot raw sugar spread moves to premium

* Arabica sell-stops seen triggered around $1.41 (Adds details in paragraph 1, updates prices, and adds trade comment; adds second byline, NEW YORK dateline)

By Marcy Nicholson and David Brough

NEW YORK/LONDON, April 8 (Reuters) - Raw sugar futures surged to a three-week peak in heavy volume on ICE on Wednesday on speculation that nearby supplies may be tightening, while heavy spreading lifted the spot contract to a premium for the first time since February.

Arabica coffee tumbled on chart-based and speculative selling, while New York cocoa rose on support from dollar weakness. Both markets dealt in heavy volume buoyed by spread activity.

ICE spot raw sugar futures hit a session high of 13.13 cents a lb, the loftiest since March 13, on concerns about limited supplies before the start of the cane harvest in center-south Brazil this month.

"There is tighter availability for prompt shipment and we're seeing more short-covering," said Tracey Allen, commodity analyst at Rabobank.

May raw sugar futures on ICE settled up 0.20 cent, or 1.6 percent, at 12.97 cents a lb. The May/July spread SB-1=R surged as high as 0.13 cent, the biggest premium on a spot continuation chart since Feb. 27, when the March contract expired.   Continuación...