LONDON: Raw sugar futures on ICE rose to a four-month high on Friday, with crop concerns in the European Union and Asia adding to expectations that the global market will shift into deficit in the 2026/27 season.
SUGAR
Raw sugar was up 1.2percent at 15.76 cents per lb by 1136 GMT after hitting a four-month high of 15.84 cents. The market was on track for a weekly gain of 7.4percent.
The UN’s Food and Agriculture Organization said in a report on Friday that sugar prices had been boosted by concerns about persistent hot and dry weather on crop yields in the European Union while El Niño-related weather conditions could dent production prospects in Asia. Dealers also noted tight supplies in second-biggest producer India, which has led to record prices and a potential early start to cane crushing.
They noted that while an early start may help to alleviate short-term supply tightness, it could also reduce yields. White sugar rose 0.8percent to USD490.70 a metric ton after peaking at USD495.50, the highest in nearly a year.
COCOA
ICE London cocoa fell 1.6percent to £4,213 a ton, but the market remained on course for a 3.6percent weekly gain. Dealers said the focus remained on the production outlook for the 2026/27 season, with an expected decline likely to lead to a more balanced market after a significant surplus in 2025/26. New York cocoa lost 1.9percent to USD5,772 a ton.
COFFEE
ICE arabica coffee was up 1.2percent at USD3.2540 per lb but the market was on track for a 2percent loss over the week. Robusta coffee was down 1percent at USD3,752 a ton.
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