Raw sugar, cocoa prices surge

Raw sugar futures on ICE climbed on Monday, extending the previous session's rise as equities rallied on a slowdown in coronavirus-related deaths and new cases but gains were capped by concerns that Brazil will boost sugar output.
May raw sugar was up 0.11 cents, or 1.1%, to 10.42 cents per lb at 1536 GMT. The front month had fallen to a 1-1/2 year low of 10.02 cents on Wednesday.
Equities jumped on coronavirus containment hopes, although a delay in talks between Saudi Arabia and Russia to cut oil supply sent crude prices tumbling again.
Weak energy prices can tempt Brazilian cane mills to produce more sugar at the expense of ethanol, a cane-based biofuel.
Sugar production in Centre-South Brazil in the upcoming 2020/21 season is expected to rise to 33.8 million tonnes from the prior season's 26.7 million, according to the average forecast in a poll conducted by broker Marex Spectron.
"We now expect Brazilian factories all to make maximum sugar (and) we suspect sugar consumption will have declined due to the virus. Sugar is back to being in serious surplus," said Marex Spectron in a note.
Speculators boosted their net short position in ICE raw sugar futures in the week to March 31 by 8,034 contracts to 17,929 contracts, CFTC data showed.
Still, dealers said the market may be trying to find a bottom in the near term, with the rate of selling petering out since the 1-1/2 year lows were hit last week.
Indian mills have contracted to export 3.75 million tonnes of sugar since Oct. 1, and have shipped out 2.86 million tonnes so far, a leading trade body said.
Egypt has enough sugar reserves for 8.6 months, with state buyer ESIIC in the market for 100,000 tonnes of Brazilian raw sugar.
May white sugar fell $5.50, or 1.6%, to $330.90 a tonne.
Oman has agreed contracts to purchase 10,000 tonnes of white sugar.
May arabica coffee rose 2.2 cents, or 1.9%, to $1.1705 per lb.
Speculators boosted their net long position in ICE arabica coffee futures in the week to March 31 by 6,898 contracts to 8,840 contracts, CFTC data showed.
Rabobank said that, while the coronavirus might yet prompt labour shortages in Brazil, it was assuming a normal harvest in the world's top coffee producer as the country was not implementing strict lockdown measures. It expects Brazil to produce 67.5 million 60 kg bags in 2020/21, leading to a global surplus of 5.6 million bags during the season, with in-home coffee consumption failing to fully offset the loss of out-of-home consumption due to the virus.
May robusta coffee rose $7, or 0.6%, to $1,227 a tonne.
July London cocoa rose 52 pounds, or 2.9%, to 1,868 pounds a tonne.
July New York cocoa was up $66, or 2.9%, at $2,329 a tonne.
Speculators boosted their net short position in ICE New York cocoa in the week to March 31 by 7,487 contracts to 13,955, CFTC data showed.