Raw sugar prices edge up, cocoa futures fall

LONDON: Raw sugar futures on ICE edged up on Thursday, boosted by a sharp rise in energy prices and lower-than-expected production in India, although the market remained well below a five-month peak set earlier this week.

SUGAR: Raw sugar gained 0.2 percent to 15.32 cents per lb by 1334 GMT. The market had climbed to a five-month high of 16.10 cents on Monday.

Dealers said the strength of energy prices would lead to more use of cane to produce ethanol rather than sugar, particularly in Brazil.

BMI said in a note that it expected global sugar production to fall 2.3 percent in 2026/27 “primarily driven by an expectation that Brazilian output will fall by 8.7 percent year-on-year as increasingly favourable crushing economics continue to redirect cane processing towards ethanol over sugar”.

The market has also derived support from lower-than-expected production in India although the impact has been offset by an improving outlook for Thailand.

India’s sugar production is set to fall below consumption for a second straight year, as lower cane yields force mills to close faster than usual, trade officials told Reuters on Thursday.

White sugar rose 0.4 percent to USD443.70 a metric ton.

COCOA: London cocoa was down 1.3 percent at 2,439 pounds per metric ton.

Dealers said the market continued to struggle to sustain prices above 2,500 pounds.

They noted the focus was moving to first-quarter grind data. European and North American reports are both scheduled to be issued on April 16.

New York cocoa lost 4 percent to USD3,211 a ton.

COFFEE: Robusta coffee fell 0.8 percent to USD3,494 a ton.

A trader in Vietnam said a possible fertiliser shortage is not an immediate concern for coffee growers but could emerge as an issue in the next two months when farmers will need fertilisers to boost cherry development

Arabica coffee lost 0.9 percent to USD2.9515 per lb.