LONDON: Raw sugar futures were lower on Monday, suffering a setback after last week's steep climb to a six-week peak, while cocoa and coffee prices rose. May raw sugar fell by 0.16 cent, or 1%, to 16.56 cents per lb at 1427 GMT. The front month rose to a peak of 16.80 cents on Friday, its highest since Feb. 26.
Dealers said the recent advance has been driven by fund buying against the backdrop of diminished crop prospects in the European Union and Centre-South Brazil. "We have had more time to evaluate the results of a late frost in the South/Central areas of the EU beet belt; the frost has killed a lot of the recently germinated beet plants, so farmers are left with a difficult choice - to re-sow or not," Marex Spectron analyst Robin Shaw said in a note.
Dry weather is set to reduce the 2021/22 cane crop in Centre-South Brazil. August white sugar fell by $2.50, or 0.5%, to $460.80 a tonne. India's sugar consumption during the peak demand season is set to fall for a second straight year after various states imposed restrictions including restaurant and shop closures to halt rising cases of COVID-19, industry officials told Reuters.
July London cocoa rose by 9 pounds, or 0.55%, to 1,640 pounds a tonne. Dealers noted cocoa grind data for the first quarter of 2021, issued last week, had provided a mixed picture with a year-on-year rise in North America but a decrease in Europe.
"Possibly this is because the vaccination rollout has made more progress in the US, allowing an increased return to normal public life, whereas the situation in Europe is still dominated by tough restrictions," Commerzbank said in a note. July New York cocoa rose by $22, or 0.9%, to $2,486 a tonne. July arabica coffee rose by 1.25 cents, or 0.95%, to $1.3245 per lb. July robusta coffee rose by $2, or 0.1%, to $1,382 a tonne.