SOFTS-Sugar extends gains from oversold positions, cocoa firms

jueves 2 de abril de 2015 06:43 GYT
 

* Weaker dollar underpins softs

* Firmer Brazilian real currency supports sugar prices

By David Brough

LONDON, April 2 (Reuters) - Raw sugar extended the prior session's gains on Thursday from oversold positions, bolstered by a weaker dollar and an influx of new speculator money into the commodity at the start of the new quarter.

Cocoa futures firmed, with dealers focused on the coming West African mid-crops, and arabica futures were little changed.

Raw sugar futures rose further after falling to 11.91 cents a lb, the lowest in more than six years, on Tuesday.

"Sugar was very much oversold, and now we're seeing a weakening of the dollar index against a basket of currencies," said Tracey Allen, commodity analyst with Rabobank.

A strengthening of the Brazilian real currency has given support to sugar by reducing incentives for Brazilian producers to export.

A weaker real enables Brazilian producers to lock in higher local-currency returns from dollar-denominated sugar sales.   Continuación...