Raw sugar prices weaken, coffee and cocoa down

Raw sugar futures on ICE were lower on Wednesday, weakened partly by the prospect of higher production in Brazil, while coffee and cocoa prices also fell.
May raw sugar was 0.15 cent, or 1.5%, lower at 10.23 cents per lb by 1415 GMT, falling back down toward a 1-1/2 year low of 10.02 cents set last week.
Dealers said increased production in Brazil could lead to a global surplus in the 2020-21 season.
Weakness in the ethanol market in Brazil is expected to lead mills to use a higher proportion of cane to make sugar rather than the biofuel in the key Centre-South region.
"The region could produce eight to nine million tonnes more sugar in 2020-21 compared to last season," analysts Agritel said in a note.
A Syrian state agency has issued an international tender to purchase and import 25,000 tonnes of raw sugar in bulk, European traders said.
May white sugar rose $10.60, or 3.2%, to $339.00 a tonne.
India's white sugar shipments have been brought to a near standstill by the coronavirus lockdown, depriving the global market of key supplies after a poor harvest in Asia's top exporter Thailand.
May arabica coffee slid 0.9 cent, or 0.75%, to $1.19 per lb, falling back after rising by nearly 3% on Tuesday.
The market remained underpinned by a decline in certified exchange stocks while funds were often reluctant to hold short positions at this time of year due to the potential risk of frost in top grower Brazil in the coming weeks.
Marex Spectron said in a note that the decline partly reflected an increase in spot demand for coffee driven by a rise in supermarket sales as consumers stockpile coffee during lockdowns imposed to slow the spread of the coronavirus.
The broker added that the closure of cafes, bars and restaurants had led to a sharp fall in out-of-home consumption. "As time goes by, consumption is forecast to decrease as in-home consumption fails to compensate fully for the loss of out-of-home," Marex Spectron said.
July robusta coffee fell $8, or 0.65%, to $1,225 a tonne.
July London cocoa was down 13 pounds, or 0.7%, at 1,833 pounds a tonne.
July New York cocoa fell $5, or 0.2%, to $2,387 a tonne.