Raw sugar steadies as investors await improved Brazil weather

NEW YORK: Raw sugar futures on ICE steadied on Friday as investors refrained from betting on higher prices given forecasts for improved weather conditions in top grower Brazil.

SUGAR

Raw sugar edged up 0.2percent to 17.61 cents per lb at 1244 GMT, having closed down 1percent on Thursday. Sugar has been drifting higher of late as excess rains in Brazil have disrupted harvesting, but investors are growing reticent to bet on further gains at these price levels.

“The market appears to be drifting now after a rush to 19.00 cents on the open yesterday. It now appears the remainder of the month will be dry (in Brazil),” said independent broker and consultant Michael McDougall.

Broker ADMIS meanwhile pointed to reports there were enough rains in Thailand and the southern Philippines this month to improve the moisture profile in areas that were previously too dry. White sugar fell 0.9percent to USD505.50 a metric ton.

COFFEE

Arabica coffee rose 1.6percent to USD2.7975 per lb, but was still heading for a weekly fall of around 3percent. Arabica remains under pressure overall from expectations that Brazil harvested a record crop in 2026/27, and from signs crop flows from Brazil to consuming regions are picking up.

In addition, Brazil’s 2027/28 is off to a good start as “ample rains have induced flowering, and the growing areas appear to be getting good follow-up rains”, said ADMIS.

Robusta coffee rose 1.1percent to USD3,308 a ton.

COCOA

London cocoa fell 1percent to £4,306 a metric ton, but was heading for 5percent weekly gains. No. 2 cocoa grower Ghana will open its 2026/27 cocoa season on Friday and announce the farmgate price for the season, five sources told Reuters.

“Evidence of a broad recovery in cocoa supply is strengthening the case for a substantial surplus, but delayed West African crop movement, weather threats and financing constraints mean the market remains vulnerable to sharp rallies,” said industry newsletter CocoaRadar.com. New York cocoa fell 0.5percent to USD5,693 a ton.