Cocoa futures closed little changed as softs bucked a weaker trend in the commodity complex, with the Thomson Reuters-Jefferies CRB index easing after Friday's surge. The CRB pared losses later in the session.
Raw sugar futures on ICE rose on delays at Brazilian ports and confirmation that a major supplier became a buyer as the ICE July contract expired on Friday, signifying tight near-term availability from Brazil.
Copersucar S.A., a top sugar and ethanol producer in Brazil, said it was buying sugar, an exceptionally rare move that has not been seen in at least 50 years after rainy weather delayed harvest and shipping, according to industry sources.
Copersucar will take delivery of 2,216 lots, or 112,578 tonnes, of sugar against the ICE Futures US July expiry on Friday, Copersucar spokesman Guilherme Penam said, declining to make further comment.
Total sugar deliveries against the July contract reached 21,737 lots, or 1.1 million tonnes, the biggest since July 2009.
October raw sugar futures on ICE settled up 0.39 cent, or 1.9 percent, to finish at 21.40 cents a lb, the highest settlement since April 30.
"The market's up on some delays at the ports. The market gets oversold and people have to cover their short hedges, and I think that's what's happening here," said Nick Gentile, chief trading officer of commodity fund Atlantic Capital Advisors in New Jersey.
The market was also supported by data from the US Commodity Futures Trading Commission (CFTC) that showed speculators had raised their net long position in raw sugar by 7,734 contracts to 9,721 in the week to June 26.
Dealers said delays to harvesting in Brazil due to rains in June had helped to tighten nearby supplies.
"What will the weather do? If the weather is normal, the market in the medium term will start slipping," said James Kirkup, head of sugar brokerage at ABN AMRO Markets in London.
Consultancy Kingsman SA on Monday cut its forecast for centre-south Brazil 2012/13 cane output by 10 million tonnes to 500 million and its forecast for sugar output by 1 million tonnes to 31.8 million.
London August white sugar settled up $8.10, or 1.3 percent, at $619.40 a tonne.
Arabica coffee futures edged up to a six-week high, buoyed by follow-through short-covering after the rally on Friday, marking the end of the second quarter.
"It's momentum carrying through from Friday," said Andrea Thompson, analyst with CoffeeNetwork.
Dealers said concerns over the impact from Brazilian rains on the arabica crop also underpinned prices.
High-quality coffee prices could be plucked from two-year lows as weather problems in world top grower Brazil damage beans, but demand remains tricky as cash-strapped consumers seek out cheaper blends.
September arabica futures jumped 3.90 cents, or 2.3 percent, to finish at $1.7460 per lb, the highest settlement since May 22, closing above the 60-day moving average for the first time since January.
Robusta futures on Liffe were little changed, with September closing up $1 at $2,135 a tonne.
Cocoa futures were choppy, underpinned by the slow start to West African mid crops and advanced forward sales in top producer Ivory Coast that reached 830,000 tonnes of the country's 2012/13 crop, more than many had expected.
"The story has definitely changed the perception of the market and infused a more bullish stance," said one cocoa futures broker.
September cocoa futures on ICE closed down $1 at $2,290 a tonne, while London September cocoa settled up 3 pounds at 1,577 pounds per tonne.
Brokers said they anticipated poor second-quarter grind data, a measure of demand. The figures are expected to be released in a couple of weeks.-Reuters
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