LONDON: Raw sugar futures on ICE were marginally higher on Tuesday as the outlook for production in western Europe continued to deteriorate while cocoa and coffee prices fell. March raw sugar rose 0.03 cents, or 0.2%, to 14.48 cents per lb by 1518 GMT. Dealers said the market was underpinned by diminishing crop prospects in several regions including western Europe.
France's farm ministry has again cut its forecast for the country's 2020 sugar beet harvest, which has been hit by crop disease and drought. British Sugar's parent, Associated British Foods, said in a trading update last week that UK production would be only 900,000 tonnes, well down on last year's 1.19 million tonnes, owing to the severe impact of virus yellows on sugar beet.
March white sugar fell $0.40, or 0.1%, to $397.30 a tonne. March New York cocoa was down $66, or 2.5%, at $2,570 a tonne after dipping to a low of $2,569, the weakest level since Nov. 18. Dealers said a recent deal between top grower Ivory Coast and chocolate maker Hershey could lead to a pick-up in producer selling and exert downward pressure on prices.
The prospect of a global surplus in the current 2020/21 season also remained a bearish influence, though there remained concerns about dry conditions in parts of Ivory Coast. March London cocoa fell 30 pounds, or 1.7%, to 1,749 pounds a tonne.
March arabica coffee fell 0.45 cents, or 0.4%, to $1.1865 per lb. Colombia produced 1.44 million 60kg bags of washed arabica coffee in November, the national coffee federation said late on Monday, down 4% on the same month last year. March robusta coffee was down $5, or 0.4%, at $1,345 a tonne.
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