SOFTS-Raw sugar climbs to 8-week high as supplies tighten

miércoles 2 de marzo de 2016 15:01 GYT

* Arabica coffee finds support just above contract low

* Cocoa underpinned by expected fall in Ivorian mid-crop (Updates prices; adds comment, second byline, NEW YORK dateline)

By Marcy Nicholson and Nigel Hunt

NEW YORK/LONDON, March 2 (Reuters) - Raw sugar futures extended gains to an eight-week high on Wednesday, with supplies tightened by drought-hit crops in Thailand and India, and the prospect of increased use of Brazilian cane by the ethanol sector, dealers said.

Arabica coffee futures turned higher on Wednesday after buying emerged just above contract lows for the second consecutive day while London cocoa retreated from a four-week high set earlier this week.

May raw sugar settled up 0.28 cent, or 2 percent, at 14.67 cents per lb, just below the session high at 14.69 cents, the highest since Jan. 5.

Dealers said an anticipated rise in Brazil sugar production this year could be curbed if mills opted to increase the amount of cane used to produce ethanol.

Brazil's oils and fuels regulator ANP said on Wednesday there was the potential for larger use of hydrous ethanol this year.

Dealers said supplies had also been tightened by drought-eroded yields in both India and Thailand.   Continuación...