SOFTS-Raw sugar edges higher, coffee and cocoa ease

• May raw sugar rose 0.03 cent, or 0.3pc, to 10.41 cents per lb by 1026 GMT, edging further away from a 1-1/2 year low of 10.02 cents set last week.
• Weakness in the ethanol market in Brazil is expected to lead mills to use a higher proportion of cane to make sugar rather than the biofuel in the key Centre-South region.
• May arabica coffee fell 0.45 cent, or 0.4pc, to $1.1945 per lb, falling back slightly after rising by nearly 3pc on Tuesday.

LONDON: Raw sugar futures on ICE edged higher on Wednesday, boosted by gains in crude oil where the focus remained on an upcoming OPEC meeting, while coffee and cocoa prices eased.

SUGAR

May raw sugar rose 0.03 cent, or 0.3pc, to 10.41 cents per lb by 1026 GMT, edging further away from a 1-1/2 year low of 10.02 cents set last week.

"Prices for raw sugar remain largely correlated with those of crude oil and ethanol," analyst Agritel said in market note.

Weakness in the ethanol market in Brazil is expected to lead mills to use a higher proportion of cane to make sugar rather than the biofuel in the key Centre-South region.

"The region could produce eight to nine million tonnes more sugar in 2020-21 compared to last season," Agritel said.

A Syrian state agency has issued an international tender to purchase and import 25,000 tonnes of raw sugar in bulk, European traders said.

May white sugar rose $4.00, or 1.2pc, to $332.40 a tonne.

India's white sugar shipments have been brought to a near standstill by the coronavirus lockdown, depriving the global market of key supplies after a poor harvest in Asia's top exporter Thailand.

COFFEE

May arabica coffee fell 0.45 cent, or 0.4pc, to $1.1945 per lb, falling back slightly after rising by nearly 3pc on Tuesday.

Dealers said the market remained underpinned by a decline in certified exchange stocks while funds were often reluctant to hold short positions at this time of year due to the potential risk of frost in top grower Brazil in the coming weeks.

July robusta coffee fell $7, or 0.6pc, to $1,226 a tonne.

COCOA

July London cocoa was down 15 pounds, or 0.8pc, at 1,831 pounds a tonne.

July New York cocoa fell $22, or 0.9pc, to $2,370 a tonne.