LONDON, May 18 (Reuters) - Raw sugar futures on ICE edged up on Friday as light short-covering and worries about dry weather in Brazil continued to support, while New York cocoa hit a one-month low before turning higher.
* July raw sugar was up 0.09 cents, or 0.8 percent, at 11.65 cents per lb by 1156 GMT, reversing course after slipping to 11.46 cents.
* Prices climbed to their highest in two weeks on Thursday on the back of fund short-covering. However, buying gave way to producer hedging later in the session, leading to a poor technical close, dealers said.
* Dealers noted renewed short-covering in light volume was lending support on Friday and putting a floor on prices.
* “Investors do seem to be buying still, and that took prices up to new near-term highs,” said Commonwealth Bank of Australia analyst Tobin Gorey. “And that buying is unlikely to be exhausted as yet.”
* Worries about weather in Brazil also supported, with recent drought having cut cane production while low prices have inspired mills to allocate more cane to ethanol.
* On Thursday Sao Paulo-based Archer Consulting said that Brazil’s centre-south region is likely to have less cane to process than previously expected because of the prolonged dry weather.
* However, ample global supplies, mainly owing to strong production in the likes of Thailand and India, are widely expected to offset the decline in Brazilian output.
* India’s monsoon rains are expected to arrive on the southern Kerala coast on May 29, India’s weather office said on Friday.
* August white sugar was unchanged at $325.40 a tonne.
* July New York cocoa was up $18, or 0.7 percent, at $2,684 a tonne after dropping as low as $2,645, its weakest since April 16.
* The market sold off sharply in the previous session as funds liquidated long positions, pushing prices below key technical levels, dealers said.
* The poor close inspired a further dip in early trade on Friday, though light buying quickly helped to pare losses.
* However, dealers said volumes were thin and speculative trading continued to dominate activity.
* July London cocoa rose 18 pounds, or 1 percent, to 1,908 pounds a tonne, supported by a softer British pound
* July robusta coffee climbed $6, or 0.3 percent, to $1,756 a tonne.
* July arabica coffee rose 0.55 cents, or 0.5 percent, to $1.1845 per lb. (Reporting by Ana Ionova Editing by David Goodman )