LONDON: Raw sugar futures on ICE rose on Wednesday, recovering from a six-week low hit in the previous session as crude oil prices jumped 3% on EU plans to ban Russian oil imports.
Higher energy prices tend to prompt mills in top sugar producer Brazil to ramp up output of ethanol, a cane-based biofuel, at the expense of sugar.
July raw sugar rose 1% to 18.82 cents per lb at 1216 GMT, after dipping on Tuesday to 18.59 cents - the weakest level for the front month since March 18.
Dealers said sugar will likely remain under pressure due to a small global surplus expected this season and next. They added, however, that until a clearer output picture emerges from Brazil, prices will have some support, especially around the 18.60 level.
The cane harvest in Centre-South Brazil is off to a slower-than-expected start as mills have been focused on using cane to produce ethanol rather than sugar.
August white sugar rose 0.2% to $520.20 a tonne, having also touched a six-week low on Tuesday.
July arabica coffee rose 1.5% to $2.2115 per lb, with the market regaining some ground after falling by nearly 3% on Monday.
Starbucks suspended its guidance for the rest of its fiscal year as second quarter sales growth missed Wall Street targets due to China’s tough COVID-19 curbs.
Comparable sales in China, where the chain has rapidly expanded in recent years, declined 23%, overshadowing 12% growth in North America.
July robusta coffee rose 1.1% to $2,138 a tonne, having hit its highest in a month earlier at $2,140.
July New York cocoa was flat at $2,607 a tonne.
Dealers said the market was being underpinned by short covering.
July London cocoa edged up 0.1% to 1,836 pounds per tonne?.