LONDON, May 15 (Reuters) - Raw sugar futures rose on Tuesday, lifted by speculative short-covering in light volume and lingering worries about dry weather in top grower Brazil.
* July raw sugar was up 0.11 cents, or 1 percent, at 11.37 cents per lb by 1135 GMT.
* Dealers pointed to light short-covering by funds, who remain heavily bearish in the commodity.
* Participants were also monitoring weather in Brazil, where light rains are expected later this week but may not be enough to ease a recent dry spell, dealers said.
* However, gains were capped by the possibility that a recent sharp weakening in the Brazilian real will inspire a wave of producer hedging, dealers noted.
* A weaker currency improves returns in local terms and encourages Brazilian producers to hedge their supplies.
* “The Brazilian real collapsed last night to a new low, giving more ammunition for the sugar bears,” Sucden Financial’s Tom Kujawa said in a note.
* Focus also remained on ample global supplies, although there were signs low prices are filtering through to production.
* Thailand has allocated an additional 300,000 tonnes of raw sugar for ethanol production this year, amid weak prices and a large global surplus of the commodity.
* August white sugar rose $0.60, or 0.2 percent, to$321.70 a tonne.
* Ethiopia is tendering to buy up to 200,000 tonnes of white cane sugar, traders said on Tuesday.
* July arabica coffee fell 0.15 cents, or 0.13 percent, to $1.1745 per lb, hovering above a three-week low touched on Monday.
* Focus remained on a large crop from top grower Brazil, although the harvest is expected slightly later than usual, said Ricardo Santos, managing director at Riccoffee.
* “We’re probably going to see harvesting activity until October due to the size of the crop,” Santos said. “But one thing is for certain - there is a lot of coffee.”
* Quality also appears to be good, although the slump in global prices could inspire Brazilian growers to take less care when harvesting the crop, Santos noted.
* “At the moment, the quality of the coffee on the trees looks very good,” he said. “But the final quality depends on how farmers will process that coffee.”
* July robusta coffee fell $4, or 0.2 percent, to$1,738 a tonne.
* July New York cocoa fell $18, or 0.7 percent, to$2,761 a tonne, weighed by a stronger dollar.
* July London cocoa fell 5 pounds, or 0.3 percent, to 1,922 pounds a tonne. (Reporting by Ana Ionova)