LONDON: Raw sugar futures on ICE turned higher on Thursday, with gains in crude oil helping to support prices as they recovered from a two-week low.
Higher energy prices can prompt cane mills in Brazil to divert output from sugar to ethanol, a cane-based fuel.
May raw sugar was up 0.8% at 19.78 cents per lb by 1322 GMT after dipping to a two-week low of 19.57 cents.
Dealers said an improving outlook for crops in both India and Pakistan was helping to keep a lid on prices.
Czarnikow on Thursday raised its forecast for world sugar production in 2021/22 by 3.2 million tonnes to 179.3 million.
“We’ve upped our sugar production estimate for 2021/22 on strong Indian, Pakistani cane crops,” the supply chain services company said in a note.
August white sugar rose 0.15% to $537.80 a tonne.
July New York cocoa fell 0.1% to $2,591 a tonne.
North American first-quarter cocoa grind data, due later on Thursday, should provide a short-term focus after last week’s European first-quarter data showed a 4.4% rise year on year.
July London cocoa fell 0.2% to 1,783 pounds a tonne.
July robusta coffee rose 0.4% to $2,100 a tonne, edging away from a six-week low of $2,058 set on Tuesday.
Trade in Vietnam’s coffee market was hit by a lack of beans at the end of the crop season while prices dipped in Indonesia on rising supplies and low demand, traders said on Thursday.
July arabica coffee rose 2% to $2.2390 per lb with the market finally finding some support after sliding from a peak of $2.3770 last week to a low on Thursday of $2.1760.