LONDON: Raw sugar futures on ICE rose to a three-week high on Wednesday as elevated energy prices prompted the diversion of cane towards production of biofuel rather than the sweetener, while coffee prices eased.
SUGAR
Raw sugar was up 0.1percent at 14.70 cents per lb by 1030 GMT after touching a three-week high of 14.77 cents. Dealers were awaiting the release of data on sugar production for the first-half of April in the key centre-south region of Brazil, due later on Thursday. The data is expected to show that more cane was diverted to produce biofuel ethanol, owing to high energy prices. Sugar production in the region is expected to have fallen 26.4percent year-on-year to 541,000 metric tons during the period, a survey of analysts from S&P Global Commodity Insights showed. The survey indicated that both cane and ethanol output is expected to have risen during the period.
White sugar gained 0.2percent to USD445.60 a ton.
COFFEE
Arabica coffee fell 0.55percent to USD2.8910 per lb. Dealers said the prospect of a bumper coffee harvest in top grower Brazil this year was weighing on prices. Brazil’s 2026/27 coffee crop is expected to grow 11.5percent from the previous season due to better climate conditions and good crop care, according to a survey of farmers conducted by the Coffee Trading Academy. Robusta coffee lost 0.5percent to USD3,426 a ton.
COCOA
London cocoa fell 0.2percent to 2,552 pounds a ton. Dealers said concerns remained that a shortage of fertilisers and an El Nino weather event could curb global production for the 2026/27 season although supplies should still be ample. Earlier this week, StoneX cut its forecast for global cocoa surplus in the 2026/27 season to 149,000 metric tons from its previous projection of 267,000 tons. New York cocoa lost 0.4percent to USD3,396 a ton.