LONDON: Raw sugar futures on ICE edged higher on Wednesday underpinned by a deteriorating production outlook in Centre-South Brazil where prospects have been dented by persistent dry weather and a recent cold snap.
October raw sugar rose by 0.02 cent, or 0.1%, to 17.10 cents per lb by 1404 GMT.
Dealers said prices appear likely to consolidate in the short-term after rebounding strongly on Tuesday after hitting a two-week low of 16.73 cents.
August white sugar rose by $4.80, or 1.1%, to $428.70 a tonne.
September New York cocoa rose by $17, or 0.7%, to $2,416 a tonne.
Dealers said the market was supported by a pick-up in cocoa demand, but supplies remain ample with production rising in top growers Ivory Coast and Ghana this season.
Europe’s second-quarter cocoa grind, a measure of demand, rose 13.6% from a year earlier to 356,854 tonnes, the European Cocoa Association said.
Dealers noted it was the first year-on-year quarterly rise since the Covid-19 pandemic began.
North American cocoa grind data covering the second quarter of 2021 is due to be published on Friday.
September London cocoa rose by 4 pounds, or 0.2%, to 1,649 pounds a tonne.
September arabica coffee rose by 3.3 cents, or 2.2%, to $1.5555 per lb.
Dealers said the market derived support partly from a strengthening in the currency of top grower Brazil on Wednesday against the dollar.
A stronger real deters farmers and exporters from selling dollar-priced arabica coffee by lowering returns in local currency terms.
The market also remained underpinned by shipping bottlenecks that have delayed shipments from top producers Brazil and Vietnam.
September robusta coffee rose by $32, or 1.9%, to $1,749 a tonne.
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