LONDON: Raw sugar futures on ICE were higher on Tuesday, boosted by broad-based gains in commodity and equity markets linked to positive news about coronavirus vaccine trials and an European Union stimulus deal.
The vaccine optimism also boosted Brazil's real currency, reducing dollar-based prices in local currency terms in the top exporter of sugar and coffee and potentially slowing producer sales of the two commodities.
October raw sugar was up 0.16 cents, or 1.4%, at 11.88 cents per lb at 1304 GMT.
Dealers noted a shift towards using more cane to make sugar rather than ethanol in Centre-South Brazil should limit the upside.
Brazil cane industry group Unica is expected to issue data covering the first half of July later this week, which is expected to provide further evidence that production in the Centre-South region remains strong.
October white sugar rose $6.60, or 1.9%, to $357.10 a tonne.
December London cocoa was up 1 pound, or 0.1%, to 1,570 pounds a tonne.
Dealers said the prospects for main crops in West Africa remained a focus, with concerns there could be a significant global surplus in 2020/21.
"The market currently expects a slight surplus for the 2019/2020 harvest season, but a larger surplus of around 300,000 tonnes for the 2020/21 crop," Martin Hug, chief financial officer at chocolate maker Lindt & Spruengli said on Tuesday.
Lindt & Spruengli expects a slow recovery in sales from the impact of the coronavirus crisis, before they bounce back next year, the company said on Tuesday.
September New York cocoa was unchanged at $2,219 a tonne.
September arabica coffee rose 1.0 cent, or 1.0%, to $1.0075 per lb.
September robusta coffee was up $27, or 2.1%, at $1,305 a tonne.
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