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FRX:http://www.bloomberg.com/news/2011-07-05/pound-strengthens-against-euro-after-u-k-services-data-exceeds-forecasts.html
 
MARKETS-LIFFE-SOFTS
LONDON, July 5 (Reuters) - ICE raw sugar futures firmed to four-month highs in early trading on Tuesday, underpinned by concerns over the Brazilian crop, while coffee eased weighed by a stronger dollar and cocoa firmed.

SUGAR

* ICE raw sugar futures rose to four-month highs as the market adjusted to London white sugar futures prices after a long weekend for a U.S. holiday.

* The sugar market was on tenterhooks waiting for the expected release of a new report by Brazilian canegrowers' group Unica in early July that is likely to revise down its forecast for cane output in the centre-south of the top sugar producer.

* Some dealers say Unica could project centre-south Brazil cane output as low as 540-545 million tonnes. Some producers have said output could be as low as 520 million tonnes. Independent Brazilian consultancy Datagro has forecast output at 536 million tonnes. Dealers noted delays in June when rains slowed down harvesting.

* ICE October raw sugar was up 0.19 cent or 0.7 percent to 27.44 cents a lb at 0838 GMT.

* Liffe August white sugar was up $4.7 or 0.6 percent to $769.70 per tonne in light volume of 197 lots.

COFFEE

* ICE arabica coffee futures and Liffe robusta futures eased, under pressure from a stronger dollar.

* Tight supplies of robustas before the next Vietnamese harvest in October, underpinned prices.

* Fears of frost in top coffee grower Brazil appeared to recede, dealers said.

* Dealers kept a close eye on Brazil's weather forecasts after a frost in a minor coffee-growing region caused a jump in prices last week.

* Vietnam is expected to export between 45,000 and 70,000 tonnes, or 750,000 and 1.17 million bags, of coffee this month, down from an estimated loading of 80,000 tonnes in June, further pushing up premium levels, traders said on Tuesday.

* ICE September arabicas were down 2.65 cents or 1 percent to $2.610 per lb at 0840 GMT.

* Liffe September robusta coffee futures were down $20 or 0.8 percent to $2,446 per tonne in slim turnover of 741 lots.

COCOA

* Liffe cocoa futures were steady, supported by pent-up physical demand for beans following Ivory Coast's resumption of trade in May.

* Liffe September cocoa was unchanged at 2,003 pounds per tonne in modest volume of 585 lots at 0843 GMT.

* ICE September cocoa was up $16 or 0.5 percent to $3,171 per tonne in turnover of 763 lots.

* Rains in Ivory Coast's key cocoa growing regions last week were ample for the development of the mid-crop until late August, but cloudy weather raised concerns about pests, farmers said on Monday.

MARKET NEWS

* The euro was set to snap its six-day winning streak on Tuesday, coming off near one-month highs against the dollar as the greenback was bought back broadly on a flurry of stop-loss buying and short-covering by macro-funds.

* Brent crude was lower on Tuesday, weighed down by lingering concerns over the health of the global economy, the Greek debt crisis and a stronger dollar.

* The Nikkei stock average eked out a tiny gain on Tuesday, managing to extend its rally to a sixth session, though signs of short-term overheating point to the chance of a near-term setback rather than a break above major resistance.

(Reporting by David Brough, editing by Jane Baird)
Source