LONDON: Raw sugar futures on ICE rose on Tuesday, boosted by gains in crude oil prices, while the market also continued to derive support from last week's announcement that India was imposing export restrictions on sugar for the first time in six years.
Rising energy prices can prompt cane mills in Brazil to ramp up output of cane-based biofuel ethanol at the expense of sugar.
Sugar
July raw sugar rose 0.6% to 19.72 cents per lb by 1117 GMT.
Dealers said the impact of restrictions on India's exports this season was partly offset by a generally favourable outlook for crops in the 2022/23 season and the prospect that Pakistan could export around 500,000 tonnes of sugar in the coming weeks.
India is likely to see normal monsoon rains in 2022, the state-run weather office said on Tuesday, the fourth straight year of normal or above normal summer rains.
August white sugar fell 0.3% to $573 a tonne, slipping back slightly from an earlier contract high of $576.
White sugar prices rise on tightening supplies, cocoa also climbs
Cocoa
July New York cocoa rose 1.9% to $2,508 a tonne, partly adjusting to gains in London-based cocoa on Monday when U.S. markets were shut for a public holiday.
Dealers said recent rains in top producer Ivory Coast had raised concerns about the quality of crops in the world's top producing country.
Above-average rain in most of Ivory Coast's cocoa regions last week will strengthen the April-to-September mid-crop, although more sunshine is needed to prevent mouldy bean deliveries, farmers said on Monday.
September London cocoa fell 0.1% to 1,771 pounds per tonne.
Coffee
July arabica coffee fell 1.1% to $2.2690 per lb.
A break below $2.2770 on the July contract could see prices fall into a $2.2135-$2.2450 range, Reuters market analyst Wang Tao said in a report.
July robusta coffee fell 1.7% to $2,070 a tonne.
Comments
Comments are closed for this article.