LONDON: Raw sugar futures were sharply lower on Tuesday, extending a retreat from last week’s five-month peak, dragged down primarily by weakness in crude oil prices.

Lower energy prices reduce the incentive for mills in Brazil to produce biofuel ethanol, a cane-based fuel, which can lead to increased production of sugar.

SUGAR

May raw sugar was down 2.5% at 19.76 cents per lb by 1430 GMT. The front month hit a five-month peak of 20.51 cents last week.

Oil prices fell in volatile trading on Tuesday on demand concerns after the International Monetary Fund (IMF) reduced its economic growth forecasts and warned of higher inflation.

August white sugar fell 1.35% to $542.30 a tonne.

A total of 299,150 tonnes of mostly Indian white sugar has been tendered against the May contract on ICE Futures Europe, exchange data showed on Tuesday.

Dealers said the delivery was seen as supportive with the comparatively large volume and the May contract’s premium to August indicating a strong appetite to receive sugar.

COCOA

July New York cocoa rose 0.3% to $2,585 a tonne.

Dealers said North American first-quarter cocoa grind data, due to be issued on Thursday, would provide a short-term focus after last week’s European first-quarter data showed a 4.4% rise year on year.

July London cocoa fell 1.5% to 1,776 pounds a tonne.

COFFEE

July arabica coffee fell 1.1% to $2.2120 per lb.

The amount of green coffee stored at ports in the United States, the world’s largest consumer of the beverage, increased at the end of March for the first time since August 2021, data from the Green Coffee Association (GCA) showed on Monday. July robusta coffee fell 1.4% to $2,069 a tonne.