LONDON: Raw sugar futures rose to a four-week high on Tuesday as adverse weather in several countries reinforced expectations that the market could shift into deficit in the 2026/27 season.
SUGAR
Raw sugar was up 2 percent at 15.31 cents per lb by 1128 GMT after setting a four-week high of 15.32 cents. Dealers said recent rains interrupted cane harvest in Brazil, which may not be as high as previously expected, while mills are using a higher proportion than last year of the cane to make biofuel ethanol rather than sugar.
Hot, dry weather in other areas including the European Union could also diminish production prospects.
White sugar rose 2percent to USD478.90 a metric ton.
COFFEE
ICE arabica coffee was up 1.2percent at USD3.2340 per lb boosted by tight supplies. Dealers noted exchange stocks have fallen to their lowest since January 31, 2024.ICE certified stocks stood at 260,720 bags on August 3, down from 292,810 bags a week earlier and sharply below the 760,529 bags by the same stage last year.
Robusta coffee rose 1.4percent to USD3,838 a ton.
COCOA
ICE London cocoa fell 1.75percent to £4,325 a ton in a modest setback following a rise of 9.7percent on Monday. Dealers said production is likely to fall significantly in the upcoming 2026/27 season, particularly in West Africa.
“More pessimistic assessments of cocoa supply for the coming 2026/27 crop year, which begins in September or October, are driving prices higher,” Commerzbank said in a note.
Demand is also beginning to recover after falling last year in response to a surge in prices in 2024. New York cocoa lost 1.55percent to USD5,847 a ton.