Raw sugar slips to six-week low; coffee, cocoa climb

NEW YORK/LONDON — Raw sugar futures on ICE fell to a sixweek low on Tuesday, weighed down by strong exports from India and weakness in crude oil prices.

Lower energy prices reduce the incentive for mills in Brazil to produce biofuel ethanol, a canebased fuel, which can lead to increased sugar production.

SUGAR: July raw sugar settled down 0.23 cents or 1.2% at 18.62 cents per pound (lb) after dipping to a low of 18.59 cents — the weakest level for the front month since March 18.

Dealers said strong exports from India remained a bearish factor, though the downside could be limited by support around 18.50 cents a lb. They noted the cane harvest in Center-South Brazil was off to a slower-than-expected start, while mills have been focused on using cane to produce ethanol rather than sugar.

“The mix was heavily in favor of ethanol, but it is too early to draw conclusions,” Rabobank said in a note.

August white sugar fell $10.40 or 2% at $519.00 a ton, having also touched a six-week low.

COFFEE: July arabica coffee rose 2.05 cents, or 0.9%, at $2.1795 per lb, with the market regaining some ground after falling by nearly 3% on Monday.

Dealers said a diminishing outlook for production in Colombia after heavy rains and related quality concerns had helped to support prices.

Coffee trader Comexim said in a report that the market seemed to be locked in a wide range, with average prices much above prepandemic levels.

“That six-month long, 50 cents wide gap starts to tell us something, which is the stability of the horizontal trend,” it said, adding that its purchasing team in Brazil has seen a low number of selling offers from farmers in recent weeks.

July robusta coffee rose $8 or 0.4% at $2,115 a ton.

COCOA: July New York cocoa rose $3 or 0.1% to $2,607 a ton.

Cocoa arrivals at ports in top grower Ivory Coast had reached 1.807 million tons by May 1 since the start of the season on Oct. 1.

July London cocoa rose £28 or 1.6% to £1,834 per ton. —