LONDON: Raw sugar futures on ICE recovered on Wednesday following sharp falls in the prior session and as oil prices and global equities headed higher.
July raw sugar were up 0.8% to 16.57 cents per lb at 1144 GMT, having closed down 2.1% on Tuesday and plumbed a two-month low of 16.19 cents on Monday.
Dealers said moves in the wider financial markets continue to drive sugar, though demand appears weak.
The discount for July sugar over October continues to widen in the run-up to July’s expiry next week, a sign there is little appetite to receive sugar given weak demand.
A large Brazilian mill plans to change its production strategy this season to increase ethanol and cut sugar production.
August white sugar rose 0.9% to $422.60 a tonne.
September arabica coffee rose 0.6% to $1.5305 per lb, having hit a one-month low of $1.4905 set on Monday.
Dealers said stronger roaster buying was on the cards following the recent drop in prices, although receding worries over next year’s crop in top producer Brazil continue to keep gains in check.
September robusta coffee rose 1.3% to $1,617 a tonne.
ICE robusta stocks have started to decline and are currently at 152,650 tonnes, versus 157,000 on June 1.
September New York cocoa fell 1% to $2,373 a tonne.
September London cocoa fell 1% to 1,614 pounds a tonne.
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