LONDON: Raw sugar futures on ICE rose on Wednesday, recouping some of their recent weakness as the Brazilian real strengthened. Cocoa prices fell meanwhile on expected selling from Ivory Coast and Ghana. March raw sugar rose 2% to 14.68 cents per lb by 1552 GMT, extending a recovery from Monday's one-month low.
The real rose versus the dollar, discouraging Brazilian sugar exports by lowering returns in local currency terms. Dealers said sugar is mostly range-bound between 14-15 cents per lb, though a downside bias remains as rains in centre-south Brazil continue to improve the supply outlook in the world's largest sugar maker.
March white sugar rose 1.2% to $401.80 a tonne. March New York cocoa fell 1% to $2,550 a tonne, having touched a 20-day low on Tuesday. A recent truce between top grower Ivory Coast and chocolate maker Hershey is expected to lead to a pickup in producer selling.
Dealers are also awaiting the outcome of the presidential elections in the world's second-largest cocoa producer, Ghana. On the upside, cocoa is being underpinned by low certified stocks on the ICE exchange, dealers said. March London cocoa fell 1% to 1,728 pounds per tonne. March arabica coffee fell 2% to $1.1685 per lb.
Green coffee exports by top producer Brazil grew 36% in November compared with a year earlier to 4.025 million 60-kg bags, Brazilian exporters association Cecafe said. Rabobank said rainfall in Brazil is forecast to continue and noted that certified stocks on the ICE exchange continue to rise. It added, however, coffee remains underpinned by a strengthening Brazilian real and by worries over the impact of recent hurricanes on central American output. March robusta coffee fell 0.9% to $1,333 a tonne.
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