LONDON: Raw sugar futures on ICE rallied on Thursday after Brazilian state-run oil company Petrobras said it will raise fuel prices starting on Friday as global oil quotes have surged following Russia's invasion of Ukraine.
High energy prices tend to prompt cane mills in Brazil to divert output from sugar to ethanol, a cane-based biofuel.
Sugar
May raw sugar was up 2.8% to 19.59 cents per lb at 1333 GMT.
Oil prices rebounded on Thursday after the United Arab Emirates backtracked on statements saying that OPEC and its allies might increase output to help plug the gap in exports from Russia.
Keeping sugar's gains in check, Indian sugar mills signed contracts to export 550,000 tonnes of the sweetener in recent days amid surging global prices and a weak rupee, four dealers told Reuters.
Dealers said while sugar prices will be driven by oil and other macro economic factors, the sweetener will struggle to improve too much given India is set to ship more than 6 million tonnes of sugar this season.
May white sugar rose 2.3% to $538.20 a tonne.
Raw sugar falls as rally pauses in energy, grain prices
Coffee
May arabica coffee fell 1.1% to $2.2675 per lb.
ICE-certified arabica stocks, which fell below 1 million bags last month to their lowest level in 20 years, have slowly begun rising and are currently at 1.009 million bags.
May robusta coffee fell 0.9% to $2,098 a tonne.
Domestic coffee prices in top robusta producer Vietnam edged up on Thursday from a week earlier as exporters halted shipments to Russia over payment and logistics problems related to the Ukraine conflict.
Cocoa
May New York cocoa rose 1.7% to $2,708 a tonne, having hit its highest level since mid-February at $2,710.
May London cocoa rose 1.4% to 1,799 pounds per tonne, having earlier hit its highest level since mid-February at 1,800.
Cocoa is being underpinned by falling supplies, especially from No. 2 cocoa producer Ghana.
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