LONDON, April 25 (Reuters) - Raw sugar futures extended their recovery on Wednesday from an 11-month low hit earlier this week, boosted by a weaker dollar.
Cocoa and arabica coffee futures consolidated gains in early trading, after commodity markets rallied the previous session, with cocoa closing up over 3 percent boosted by funds covering short positions.
SUGAR
* Raw sugar futures were higher, supported by the dollar hitting a three-week low against a basket of currencies, as the market extended its recovery from an 11-month low hit on Monday after funds liquidated long positions.
* May raw sugar on ICE was up 0.22 cent or 1 percent at 22.22 cents a lb at 0827 GMT. The contract dipped to 21.78 cents a lb on Monday, the lowest level for the front month since May 24, 2011.
* London August white sugar futures rose $6.60 or 1.1 percent to $589.20 per tonne.
* Indian sugar production is poised to increase to 29.8 million tonnes (raw value basis) in marketing year (MY) 2012/13 (October-September) due to an expected increase in sugarcane production, according to a report issued by a U.S. Department of Agriculture attache.
* Argentine sugar production in marketing year 2012/13 is projected at 2.04 million tonnes (raw value), according to a report issued by a U.S. Department of Agriculture attache.
* Colombian sugar production is expected to increase by 30,000 tonnes to 2.31 million tonnes in MY 2011/2012, according to a report issued by a U.S. Department of Agriculture attache.
COCOA
* ICE cocoa futures were steady, digesting Tuesday's gains, when a short covering rally pushed prices up. Dealers said higher prices could entice further origin selling.
* July cocoa on ICE rose $1 to $2,285 per tonne.
* New York second month cocoa will rise more to $2,329 per tonne, driven by a sharp wave (c), according to Reuters analyst Wang Tao.
* The CME Group, parent of the Chicago Board of Trade, on Tuesday cut margins for trading corn, cocoa, coffee, cotton and sugar futures.
COFFEE
* Arabica coffee futures were slightly higher, holding onto gains to remain at the upper end of the recent trading range, with dealers noting the market was facing technical resistance at these levels.
* July arabicas on ICE rose 0.4 cent or 0.2 percent to $1.8390 per lb, above last week's 18-month low, basis second month, of $1.7390 per lb.
* Costa Rica coffee production is forecast to drop 5 percent in the upcoming 2012/13 harvest due to the biennial nature of the crop, as coffee trees usually produce less after a boom year.
* The top price of Kenya's benchmark coffee grade AA rose to $415 per 50 kg bag at this week's sale from $322 at the previous auction, while the amount sold also increased, the Nairobi Coffee Exchange (NCE) said on Wednesday.
* Benchmark Liffe July robusta coffee futures were up $2 at $2,051 per tonne.
OTHER MARKETS
* The euro hovered near a three-week high and global shares rose on Wednesday ahead of the U.S. Federal Reserve's policy meeting, due mainly to signs of good demand for euro zone sovereign debt before a German bond sale, and some strong corporate earnings.
* The dollar fell to its lowest in three weeks versus a basket of currencies on Wednesday as a rise in appetite for riskier assets encouraged cautious selling of the low-yielding U.S. currency ahead the latest Federal Reserve policy announcement.
* Brent crude hovered above $118 a barrel on Wednesday as investors marked time ahead of the outcome of the U.S. Federal Reserve's policy meeting, with some investors hoping to hear hints of further monetary easing in the world's top oil user. (Reporting by Sarah McFarlane; Editing by Alison Birrane)
