LONDON: Raw sugar futures edged higher on Tuesday, boosted by the potential that exports from both Brazil and India may be below earlier expectations while New York cocoa bounced off the prior session's five-week low.
SUGAR
July raw sugar was up 0.03 cents, or 0.25 percent, at 12.13 cents per lb at 1130 GMT. The contract rose to a five-week high of 12.24 cents on Monday.
Dealers said the market had been supported by the prospect that Brazilian exports may be lower than previously expected as mills seek to use as much cane as possible for more profitable ethanol production.
Reports that India may build a sugar buffer stock rather than exporting surplus supplies was also supportive.
"The combination is probably enough for fundamental investors to decide that being heavily short is no longer such a good idea," Commonwealth Bank of Australia analyst Tobin Gorey said.
August white sugar was up $2.20, or 0.65 percent, at $342.20 a tonne.
COCOA
July New York cocoa was up $29, or 1.1 percent, at $2,644 a tonne, regaining some ground after falling to a five-week low of $2,609 on Monday.
The recent decline has been driven by funds scaling back long positions against the backdrop of favourable weather in Ivory Coast which was seen improving the outlook for the 2017/18 mid-crop in the world's top grower.
July London cocoa rose 18 pounds, or 1.0 percent, to 1,881 pounds a tonne.
Ivory Coast cocoa grinders processed 295,000 tonnes of beans by the end of April, data from exporters' association GEPEX showed on Tuesday. That is up 2 percent from 289,000 tonnes during the same period last season.
COFFEE
July robusta coffee fell $5, or 0.3 percent, to $1,790 a tonne.
Swiss commodity trader Sucafina picked up a large chunk of robusta coffee stocks tendered on the exchange this month, sources told Reuters, despite a rule change that makes it more costly to carry the coffee forward.
July arabica coffee rose 0.90 cents, or 0.75 percent, to $1.2110 per lb.
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