LONDON: Raw sugar futures on ICE rose on Monday as oil headed higher and the contract recovered from Friday’s losses. Cocoa and coffee also headed higher.
SUGAR
Raw sugar rose 1.3percent to 17.73 cents per lb at 1214 GMT, having settled down 0.5percent on Friday. Oil prices rebounded more than 3percent on renewed US-Iran tensions, boosting sugar by tempting cane mills to ramp up output of cane-based ethanol at the expense of sugar. Top EU sugar producer Suedzucker has meanwhile raised core 2026/27 earnings expectations on higher demand for biofuels. Sugar headed higher in recent weeks as excess rains in Brazil disrupted harvesting, but investors are growing reticent to bet on further gains especially as the remainder of September should be dry.
Also, key sugar consumer India is witnessing an unprecedented food safety crackdown, with authorities forcing restaurants to suspend operations and debating a red hexagonal stamp for food products high in sugar, salt or fat. White sugar rose 1.1percent to USD507.90 a metric ton.
COCOA
London cocoa rose 0.4percent to £4,377 per ton, having posted a 7percent weekly gain last week. Ivory Coast has set its 2026/27 farmer price at around USD2.12 per kg, while Ghana’s new price works out at around USD3.57 per kg, raising smuggling concerns.
Dealers noted rainfall in No. 3 grower Ecuador has been well above average of late, while rains in Ivory Coast and Ghana have been spotty and more are needed.
Cocoa arrivals at ports in top grower Ivory Coast stood at 16,000 metric tons in the week ending September 27, bringing the total since the 2026/27 season start to 36,500 tons. New York cocoa rose 0.9percent to USD5,794 a ton.