Raw sugar futures on ICE rose sharply on Tuesday, buoyed by a rebound in crude oil prices, while coffee and cocoa prices were also higher. May raw sugar was up 0.21 cents, or 1.9%, at 11.25 cents per lb by 1446 GMT. The front month fell to a 1-1/2 year low of 10.44 cents last week.
"The market is likely to remain highly correlated with oil prices in the near term. Sugar prices remain above what would be ethanol parity for Brazil's mills," Commonwealth Bank of Australia analyst Tobin Gorey said in a note.
Brazilian mills are expected to make a sharp switch from ethanol to sugar production in the new season kicking off in the world's largest sugarcane producer, as falling gasoline prices and a weak currency reduce the biofuel's appeal, analysts said.
Oil jumped 3% on Tuesday, supported by steps by the US Federal Reserve to bolster the economy and hopes the United States will soon reach a deal on a $2 trillion coronavirus aid package. May white sugar fell $0.30, or 0.1%, to $340.30 a tonne. May arabica coffee rose 2.80 cents, or 2.3%, to $1.2405 per lb.
Dealers said the market was supported by potential disruptions to shipments out of Brazil linked to the coronavirus pandemic and declining stocks. They noted ICE certified stocks were continuing to decline. May robusta coffee rose $9, or 0.7%, to $1,253 a tonne.
May New York cocoa was up $11, or 0.5%, at $2,268 a tonne, boosted by broad-based gains in commodity markets and a weak dollar. Dealers said an improving outlook for the mid-crop in Ivory Coast, however, remained a bearish influence. May London cocoa was up 2 pounds, or 0.1%, at 1,848 pounds a tonne.
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