LONDON: Raw sugar futures on ICE rallied on Friday, recovering sharply from Thursday’s four-week lows after dealers priced in ample near-term supplies.
SUGAR
Raw sugar rose 2.2percent to 14.24 cents per lb at 1148 GMT, having hit its lowest since late April on Thursday. There’s has been a strong start to the sugar harvest in top grower Brazil, but broker ADMIS said “it might be too much to ask for Brazil’s sugar production to maintain the current strong pace”.
It also noted concerns over the impact of the monsoon in No. 2 grower India. India forecast an El Nino-weakened monsoon in 2026 that will bring the lowest rainfall in 11 years, fuelling concerns over crops, food prices and growth in the world’s fifth-largest economy.
Sugar’s rally came in spite of a sharp drop in oil prices on the back of a possible US-Iran ceasefire deal. Higher energy prices are bullish for sugar as they often tempt cane mills to produce more ethanol fuel and less sugar. White sugar rose 2.9percent to USD438 a metric ton.
COFFEE
Arabica coffee fell 1.7percent to USD2.6955 per lb, having settled up 1.6percent on Thursday. A drop in coffee exports from No. 2 arabica grower Colombia is keeping market conditions tight near term, though supplies should improve sharply as an expected bumper harvest in Brazil gets underway. The harvest pace has been slow so far, however. Robusta coffee fell 0.9percent to USD3,522 a ton.
COCOA
London cocoa dipped 0.1 percent to 3,085 pounds a ton, having settled down 1.4percent on Thursday. New York cocoa fell 0.6percent to USD4,074 a ton. Expana cocoa analyst Andrew Moriarty said crops in Ivory Coast are in good condition, giving a positive outlook for the main crop that starts in the second half.
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