Raw sugar hits lowest in nearly 1-1/2 years

Raw sugar prices on ICE fell near 1-1/2 year lows on Wednesday on fears the coronavirus pandemic will knock demand and bets that plunging energy prices will prompt Brazil's cane mills to produce sugar at the expense of ethanol, a cane based biofuel.
May raw sugar fell 0.20 cents, or 1.8%, to 10.23 cents per lb at 1519 GMT, having hit its lowest since late September 2018 at 10.20. Sugar posted losses of more than 20% for the first quarter of 2020.
Oil prices headed towards 18-year lows on escalating supply glut fears, knocking global gasoline and ethanol prices. Global equities also fell as evidence continues to mount that the coronavirus pandemic is sending the world economy into a deep recession.
"Sugar more than any other agri-commodity appears to be suffering the most from the global crisis," said a dealer. He cited the 'double whammy' of expected lower global demand and higher production from Brazil hammering chances of another deficit in 2020/21.
Also weighing on sugar is ongoing weakness in the Brazilian real, which tempts exporters in Brazil to sell dollar-priced sugar as it raises their returns in local currency terms.
May white sugar fell $4, or 1.1%, to $349 a tonne, though losses were limited as the coronavirus lockdown in India and beyond is disrupting exports and supply chains, prompting consumer stockpiling.
May arabica coffee fell 0.9 cents, or 0.8%, to $1.1865 per lb, as the market adjusted after gaining nearly 10% last month, one of the few commodities in the world to do so.
ICE certified stocks continued the descent, falling to 1.980 million bags, their lowest in nearly two years, indicating strong demand as roasters stockpile the bean as the pandemic disrupts supply chains.
May robusta coffee fell $10, or 0.8%, to $1,211 a tonne.
Indonesia exported 9,409.6 tonnes of robusta coffee beans from Sumatra's Lampung province in March, up 43% from the same month last year but down on a monthly basis.
May London cocoa was down 13 pounds, or 0.7%, at 1,741 pounds a tonne.
Cocoa is coming under pressure from fears the coronavirus-related economic slump will hurt demand for luxury foods, and from improved weather in top producer the Ivory Coast. May New York cocoa fell $13, or 0.6%, to $2,237 a tonne.