LONDON: Raw sugar edged up Wednesday, climbing off the previous session's one-week low as financial markets steadied on recovery hopes. But London cocoa hit its lowest in more than 1-1/2 years.
October raw sugar edged up 0.03 cents, or 0.3%, to 12.22 cents per lb at 1431 GMT, having hit a low of 11.78 on Tuesday.
Sugar's upside remains limited by the prospect of substantial supplies from Brazil and India in the coming months, and fears over weakening demand, consultants Agritel said.
But they said funds were taking a bullish view of sugar as oil prices attempt a recovery.
Rising oil prices encourage cane mills in Brazil to ramp up cane-based ethanol output at the expense of sugar.
German ethanol producer CropEnergies, a unit of German sugar producer Suedzucker, said EU demand for bioethanol is likely to recover amid easing coronavirus lockdowns across the region.
Indonesian state-owned plantation company PT Perkebunan Nusantara III will add 60,000 to 70,000 hectares to its sugar plantation to meet domestic white sugar demand. Indonesia is the world's second biggest sugar importer after China.
August white sugar fell $1.30, or 0.3%, to $349.20 a tonne.
September London cocoa fell 28 pounds, or 1.8%, to 1,555 pounds per tonne, after hitting its lowest since October 2018 at 1,554.
Prospects are improving for next season's crop from top producer Ivory Coast, while demand for the chocolate ingredient continues to falter.
September New York cocoa fell $36, or 1.7%, to $2,111 a tonne, a 1-1/2 year low.
September arabica coffee rose 0.6 cents, or 0.6%, to 100.85 cents per lb, steadying after Monday's near 5% loss on receding worries about adverse weather in Brazil. September robusta coffee rose $7, or 0.6%, to $1,198 a tonne.
Comments
Comments are closed for this article.