OREANDA-NEWS. Raw sugar futures firmed on short covering on Monday after U.S. data showed a rise in the net short position held by speculators, while arabica coffee steadied, supported by a soft dollar.

New York cocoa futures edged lower in light technically driven selling, extending Friday's slide.

Raw sugar futures firmed after the latest data from the U.S. Commodity Futures Trading Commission showed speculators raised their net short position.

James Kirkup, head of sugar at ABN AMRO Markets in London, said he was surprised by the soft tone of the market after the U.S. data.

"We had been expecting more of a bounce in prices," he said.

"Funds seem to be leaving commodities overall, and moving into other areas such as equities."

Sugar futures prices were capped by the combined impact of expectations of a large crop in top grower Brazil, boosted by favourable rains, a weak Brazilian real and prospects of raw sugar exports from India.

Prices were underpinned by market talk that vessel nominations had taken place after about one million tonnes were delivered against the recent expiry of the ICE March futures contract.

May raw sugar futures were up 0.05 cents or 0.4 percent at 13.49 cents a lb at 1200 GMT, within sight of last week's nearly 5-year low of 13.18 cents a lb.

May white sugar futures were up \$0.40, or 0.1 cent, at \$374.60 per tonne.

May arabica coffee futures steadied, trading down 1.7 cents, or 1.2 percent, at \$1.3820 per lb, supported by the softer dollar.

Dealers said the market may have touched a bottom after hitting a 13-month low of \$1.288 per lb last Tuesday, pressured by a weak real and rains in Brazil which relieved stressed trees after drought.

Robusta coffee futures rose with May up \$25, or 1.3 percent, at \$1,906 a tonne.

New York cocoa futures on ICE dipped further, having fallen more than 2 percent on Friday.

May New York cocoa on ICE fell \$24, or 0.8 percent, to \$2,921 a tonne.

May London cocoa eased 14 pounds, or 0.7 percent, to 2,015 pounds a tonne.

"Trading volumes remain buoyant and a continuation of upward momentum and subsequent breach of resistance around 2,050 pounds could see gains target the area around 2,075 pounds," said Kash Kamal, senior research analyst with Sucden Financial.