LONDON: Raw sugar futures on ICE climbed to their highest in more than two months on Wednesday, buoyed by a global rally in equities and the strength of Brazil's real currency, while arabica coffee also advanced.
Brazil's real surged on Wednesday, potentially slowing sales from the world's top exporter of both sugar and coffee, with dollar-denominated global prices now less attractive in local currency terms.
July raw sugar was up 0.17 cents, or 1.5%, at 11.39 cents per lb by 1430 GMT after peaking at 11.42 cents, the highest level for the front month since March 27.
Dealers said that the more constructive macroeconomic backdrop had helped to trigger fund buying.
An increase in production in Centre-South Brazil this season and the prospect of a rebound in India helped to limit the rally in sugar prices.
August white sugar was up $4.50, or 1.2%, at $374.50 a tonne.
French sugar group Tereos on Wednesday posted its first full-year net profit in three years, mainly helped by a rebound in sugar prices in Europe, and said it was confident for the current season despite the COVID-19 crisis.
July arabica coffee rose 0.6 cents, or 0.6%, to 98.80 cents per lb.
Dealers noted gains were capped by steady progress in the Brazil coffee harvest with a bumper crop expected this year. July robusta coffee was up $19, or 1.6%, at $1,198 a tonne.
July New York cocoa was down $22, or 0.9%, at $2,380 a tonne. Dealers said concerns about declining demand combined with an improving crop outlook in top grower Ivory Coast after recent rains had weighed on prices this week. July London cocoa rose 4 pounds, or 0.2%, to 1,902 pounds a tonne.