LONDON: ICE raw sugar futures rose on Tuesday as oil prices firmed and a global stocks rally resumed, reducing excess production fears.
Coffee resumed a downward trend, while cocoa headed higher.
July raw sugar rose 0.15 cents, or 1.3%, to 12.19 cents per lb at 1435 GMT.
Global stocks headed higher following a stimulus splurge from the US Federal Reserve and oil prices rallied, deterring mills in Brazil from ramping up sugar output at the expense of cane-based biofuel ethanol.
Archer Consultancy said Brazilian mills had hedged nearly 90% of their expected sugar exports this year, leaving little room for further sales that could weigh on ICE futures.
Dealers said sugar is trying to consolidate in a higher range, with Brazil having sold nearly all its crop, but warned gains will be capped given higher looming production in Brazil and India this year and very little, if any, consumption growth.
August white sugar rose $4.9, or 1.2%, to $388.50 a tonne.
September arabica coffee fell 1 cent, or 1%, to 94.85 cents per lb, having hit a nine-month low of 94.55 cents on Monday.
Green coffee stocks in the United States rose for a second consecutive month. The increases happened as most US coffee shops were operating under very restricted conditions or were closed altogether due to coronavirus lockdowns. September robusta coffee fell $14, or 1.2%, to $1,180 a tonne.
September London cocoa rose 15 pounds, or 0.9%, to 1,715 pounds per tonne, having hit a 9-1/2 month low of 1,684 pounds on Monday on worries over demand.
Well-above average rainfall in some of Ivory Coast's cocoa-growing regions last week raised fears of plantations flooding.
Ivory Coast cocoa arrivals fell 7.1% between Oct. 1 and June 14, exporters estimated. September New York cocoa rose $38, or 1.7%, to $2,304 a tonne.-Reuters
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