LONDON: Raw sugar futures on ICE turned higher on Wednesday after falling to the lowest level in more than one month, with the expiry of the May contract on Friday providing a short-term focus for the market.
May raw sugar was up 0.95% at 19.17 cents per lb by 1457 GMT as the market rebounded from a dip to 18.80 cents - the lowest level since March 18.
Dealers noted May’s premium to July had widened slightly to around 0.10 cent while the open interest had been falling steady, indicating a lack of appetite to take delivery against the contract.
The open interest on the May contract stood at 31,107 lots, as of Tuesday.
The largest ever delivery for a May raw sugar contract was in 2020 when it totalled 44,449 lots.
Sugar from Brazil and Central America is expected to be tendered against the contract.
Brazilian sugar industry group Unica is expected to release this week its first production report for the new season, with data from the first half of April.
August white sugar rose 1% to $525.50 a tonne.
July New York cocoa rose 1% to $2,532 a tonne, recovering some ground after the prior session’s fall to an eight-week low of $2,478.
Dealers said concerns about weak demand persisted, however, following lower first-quarter cocoa grinds in North America and Asia.
July London cocoa rose 1.1% to 1,790 pounds a tonne.
July arabica coffee was down 1.9% to $2.17 per lb after slipping to a four-week low of $2.1670.
Dealers said the market was weighed by concerns about weak demand while technical indicators had also become bearish. July robusta coffee fell 1.7% to $2,020 a tonne.