ICE raw sugar and arabica coffee prices rallied on Tuesday as investors took comfort from a recovery in the Brazilian real and a rally in oil prompted by easing coronavirus lockdown restrictions in some countries.
July raw sugar was up 0.27 cents, or 2.6%, to 10.67 cents per lb at 1352 GMT, having closed down 5.2% on Monday, erasing nearly half of the prior week's gains.
Rising energy prices tend to discourage Brazilian cane mills from ramping up sugar output at the expense of ethanol, a cane-based biofuel.
Brazil is expected to produce 35.3 million tonnes of sugar in the 2020-21 season (April-March), 18.5% more than in the previous crop, as mills allocate more cane to make sugar versus ethanol, official projections show.
August white sugar rose $10.50, or 3.1%, to $352.60 a tonne.
July arabica coffee rose 3.3 cents, or 3.1%, to $1.1055 per lb, having hit its lowest in nearly 1-1/2 months last week.
July arabica may break a resistance at $1.0770 per lb, and rise towards $1.0975, as it has found support at $1.0420, a Reuters technical analysis shows.
July robusta coffee rose $12, or 1%, to $1,209 a tonne.
July New York cocoa was up $27, or 1.1%, at $2,414 a tonne.
July London cocoa rose 4 pounds, or 0.2%, to 1,913 pounds a tonne.
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