Sugar prices drift lower

LONDON: Sugar futures on ICE were slightly lower on Friday as traders focused on the expiry of the March whites contract while arabica coffee prices were consolidating just below the previous session’s 10-year peak.

March raw sugar fell 0.3% to 18.25 cents per lb by 1137 GMT and was on track for a marginal weekly gain of 0.1%.

Dealers said the market remained underpinned by the recent strength of energy prices, which increases the incentive to use cane to produce biofuel ethanol rather than sugar, particularly in top exporter Brazil.