MARKETS-SOFTS/(UPDATE 1)
* Dealers expect European Q1 cocoa grindings to rise
* Coffee activity focussed on spreads
* Sugar upside capped by bearish fundamentals-dealer
(Adds quotes, bylines, updates prices)
By Sarah McFarlane and David Brough
LONDON, April 13 (Reuters) - Cocoa prices were firm on Wednesday as dealers said industry buying underpinned the market.
Coffee prices rose, consolidating inside the recent higher range, while sugar was steady as dealers eyed risks to global economic growth.
Cocoa prices have fallen by around 25 percent since peaking at a 32-year high in March, as top producer Ivory Coast has looked closer to resuming exports, following the EU lifting sanctions and the arrest of defeated leader Laurent Gbagbo.
The lower prices have stimulated industry offtake, dealers said.
"The reason it's holding is that industry are buying," a dealer at an international trade house said.
New York's ICE July cocoa futures traded up $18, or 0.6 percent, at $3,074 a tonne, at 1134 GMT. London's July cocoa futures were up 7 pounds at 1,944 pounds a tonne.
As the Ivory Coast situation improved, the market's focus shifted to the first quarter European cocoa grind data, a key indicator of demand, due on Thursday.
"We'd expect it to be a little bit up due to the fact there's been no grinding in Ivory Coast, if it's not up, it's bearish," the dealer said, estimating grindings would increase by two or three percent.
International trade house and cocoa processor Archer Daniels Midland Co. (ADM), whose operations in Ivory Coast have been suspended since the first week of March, said in an emailed statement: "We're currently leveraging our cocoa processing operations in Ghana, Singapore, Brazil, the United States and Europe to meet our customers' needs."
Ivory Coast's major port of Abidjan remained shut on Wednesday as staffing and logistical issues meant operations could not resume, shipping sources said.
Coffee prices rose, consolidating within a higher range, following last week's rally which saw arabica prices gain over five percent on fund buying.
"It moved up last week after being oversold, today the activity is mostly spread-based," a London-based broker said.
New York's ICE July futures were up 4.6 cents, or 1.7 percent, at $2.8150 a lb at 1135 GMT, while London July robustas rose 1.6 percent to $2,464 a tonne.
Sugar futures consolidated after Tuesday's fall as dealers kept a close watch on the oil market and macroeconomic developments noting concerns over risks to global economic growth.
ICE May raw sugar futures traded up 0.19 cent, or 0.7 percent, at 25.77 cents a lb at 1136 GMT.
"I think sugar prices will stay around these levels for now. The market needs to take a breather," said Andrey Kryuchenkov, fund manager with VTB Capital.
"The upside will be capped by the fundamentals," Kryuchenkov added, referring to larger than expected Thai production and an upwardly revised estimate for Pakistani output.
Pakistan is estimated to have produced 4.1 million tonnes of sugar from the 2010/11 crop, industry officials said on Wednesday, adding there was no need to import the sweetener this year, given ample stocks.
Another London sugar dealer said the steady pace of cane harvesting in the centre-south of Brazil, weighed on sugar futures prices.
London May white sugar futures traded up 0.2 percent at $699.90 a tonne. * Prices as of 1137 GMT Product Last Change Percent Move End 2010 Ytd Percent ICE sugar 25.76 0.18 +0.70 32.12 -19.80 ICE coffee 281.55 4.65 +1.68 241.80 16.44 ICE cocoa 3074.00 18.00 +0.59 3052.00 0.72 Liffe sugar 699.90 1.60 +0.23 777.50 -9.98 Liffe coffee 2465.00 39.00 +1.61 2097.00 17.55 Liffe cocoa 1942.00 5.00 +0.26 2029.00 -4.29 Crude oil 106.75 0.50 +0.47 91.38 16.82 Euro/dlr 1.45 0.00 +0.23 1.34 8.46 * ICE sugar and ICE coffee in cents per lb, ICE cocoa, Liffe sugar and Liffe coffee in dollars per tonne. Liffe cocoa in pounds per tonne
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