LONDON, May 10 (Reuters) - ICE July raw sugar futures jumped by as much as 5 percent to 14.44 cents a lb early on Monday, supported by a weaker dollar after global policymakers carved out an emergency rescue package for debt-laden nations. ICE July raw sugar stood at 14.43 cents a lb, up 0.68 cent or 4.95 percent in volume of 5,516 lots at 0831 GMT, in a sharp upward correction after touching a one-year low on Friday. "It's (rise) related to outside factors -- mainly the dollar," a London-based sugar futures dealer said. "Probably other commodities will be up today." On Friday, raw sugar posted an unprecedented 12th weekly loss, weighed down by expectations of large supplies of the sweetener and worries over economic contagion from Greece, in a correction from a 29-year peak of 30.4 cents a lb on Feb. 1. Dealers said favourable weather in top sugar producer Brazil and an improving crop outlook in top consumer India had contributed to the weakness in the sugar market. The market has also been hampered by overall weakness in oil and other commodity markets linked to the deepening debt crisis in the euro zone, which the $1 trillion global emergency rescue package would seek to address. ICE cocoa futures also rose, bolstered by the weaker dollar. The sterling-denominated London cocoa market will keep close watch on the pound ahead of a Bank of England rate decision at 1100 GMT. The BoE is widely expected to leave rates at 0.5 percent and not to undertake any further quantitative easing purchases. Sterling rose against the dollar on Monday as a deal by European policymakers on a rescue package to avoid Greece's debt crisis spreading boosted risky assets, though it fell sharply versus a broadly stronger euro. Coffee futures were little changed in light early volumes. PRICES * ICE July raw sugar up 0.6 cent or 4.4 percent at 14.35 cents a lb at 0822 GMT. * London Aug white sugar up $9.90 or 2.3 percent at $447.70 per tonne. * ICE July arabica coffee down 0.55 cent or 0.4 percent at $1.3335 per lb. * Liffe July robusta coffee down $3 or 0.2 percent to $1,368 per tonne. * July cocoa on ICE up $51 or 1.7 percent at $3,067 a tonne. * July cocoa on Liffe ended up 32 pounds at 2,426 pounds a tonne on Friday after touching a 32-year high for the benchmark second month of 2,429 pounds. DATA/EVENTS * Bank of England (BoE) Monetary Policy Committee (MPC) announces interest rate decision at 1100 GMT. * 2010 World Economic Forum on Europe in Brussels. * ECB President Jean-Claude Trichet speaks at the conclusion of BIS meeting. * MARKET NEWS * Global policymakers cobbled together an emergency rescue package worth about $1 trillion to stabilise world financial markets and resolve the Greek debt crisis that threatened to sink the euro and unravel euro-zone unity. * The European Central Bank will buy euro zone government bonds to help support fractured markets, abandoning resistance to full-scale asset purchases. * Euro rallies on Monday on news of an emergency package to prevent Greece's debt crisis from spreading to other euro zone countries, although scepticism lingered about the possibility of a sustained rebound. * Asian stocks jumped on Monday after the European Union and IMF carved out an emergency loan package of up to 750 billion euros ($1 trillion) to keep Greece's debt crisis from spreading through the euro zone. * Oil prices rose above $77 on Monday from their lowest in almost three months after the European Union agreed to protect the bloc's debt-stricken nations, boosting confidence energy demand will continue to recover. FUNDAMENTALS * Sugar output in Thailand, the world's second-biggest exporter, may be little changed in 2010/11 from the recently finished crop as drought is likely to cut cane production, a senior industry official said on Monday. * Bids in the international tender from Pakistan's state trading agency TCP to purchase 200,000 tonnes of white sugar ranged between $556.80 to $608 a tonne c&f, European traders said on Monday. * New York sugar prices are expected to rebound further to 14.13 to 14.17 cents a lb since recovery has been rapid after touching a low at 13.00 cents. * India's biggest sugar producing state has asked mills to start crushing a month earlier than normal because of an expected rise in cane output by a third, the Economic Times reported on Monday. * New York coffee prices are expected to revisit the last Friday's low at $1.3125 per lb, as the minor wave pattern on the hourly chart indicates the current rebound from $1.3125 could be a wave "4". * Japanese warehouse coffee stocks in March rose 3 percent from a month earlier to 101,941 tonnes, the Ministry of Agriculture said on Monday. * New York cocoa futures are likely to rebound to $3,090 per tonne -- the 50 percent Fibonacci retracement level on the move from $3,169 to $3,010. TECHNICALS * London July robusta coffee support $1,259 per tonne, resistance $1,418. * ICE July arabica coffee support $1.2825 per lb, resistance $1.4145. * London Aug white sugar support $434.80 per tonne, resistance $468.00. * ICE July raw sugar support 13.37 cents a lb, resistance 14.77 cents. * London July cocoa support at 2,310 pounds a tonne, resistance 2,479 pounds. * ICE July cocoa support at $3,000 a tonne, resistance $3,245. (Reporting by David Brough; Editing by Amanda Cooper) (david.brough@thomsonreuters.com ; +44 207 542 8421; Reuters Messaging: david.brough.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.