SOFTS-ICE raw sugar climbs, May premium lifted to 7-week high
* Conab forecasts larger Brazil sugar cane crop
* Small delivery expected against May white sugar
* May/July arabica spread narrows (Adds spread to paragraph 1, updates prices; adds broker comment, second byline, NEW YORK dateline)
By Marcy Nicholson and Nigel Hunt
NEW YORK/LONDON, April 13 (Reuters) - Raw sugar futures rose on Monday as funds rolled forward a large net short position out of the May contract, lifting its premium over the July contract to a seven-week high.
Coffee futures fell, causing the arabica May/July discount to narrow, while cocoa futures also climbed.
Raw sugar defied the strong U.S. dollar and rose as the index roll dominated the session and speculators were forced to cover their short positions in the spot contract, lifting its premium, traders said.
"People are pretty one-sided in the market right now and a lot of shorts are getting pulled out of the market right now," said Jack Scoville, a vice president for Price Futures Group in Chicago.
May raw sugar on ICE rose 0.18 cent, or 1.4 percent, to settle at 13.01 cents a lb. The May/July spread SB-1=R surged, rising as high as a 0.20-cent premium, the highest since Feb. 24. Continuación...