LONDON: Raw sugar futures on ICE rose on Tuesday after hitting a nearly four-month low in the previous session, as Brazil’s top producer’s sugarcane crushing data for early June were below estimates.
Raw sugar in July rose 1.4% to 18.56 cents a pound at 1407 GMT, after falling to its lowest level since March 1 at 18.20 cents on Monday.
Sugar cane crushing in south-central Brazil was below market estimates in the first half of June in unfavorable weather, leaving sugar production at 2.14 million tonnes, down 3.8% compared to a year ago.
Also helping sugar, global stocks and oil rose on China’s decision to ease some quarantine requirements for international arrivals, raising expectations for stronger global growth.
In bearish news, however, India is considering allowing factories to ship raw sugar stocks that have piled up in ports and warehouses, trade and government sources said, weeks after the country imposed restrictions on the foreign sale of the sweetener.
White sugar in August rose 1.8% to $551.80 a tonne.
September Arabica coffee fell 1% to $2.1975 a pound, after hitting a two-week low of $2.19 on Monday.
Dealers said there was no risk of crop-threatening cold weather in Brazil’s coffee regions over the next two weeks.
Arabica, however, is supported by a steady decline in ICE-certified stocks and a shortage of sales in Brazil, the top producer, where farmers expect local prices to rise further. September robusta coffee slipped 0.2% to $2,036 a tonne.
New York Cocoa in September rose 0.5% to $2,421 a tonne. Cocoa arrivals at the ports of Ivory Coast’s top producer reached around 1.970 million tonnes between October 1 and June 26, down 4.9% from the same period last season, exporters estimated. Above-average rains last week in most cocoa growing areas of Ivory Coast were good for the development of the upcoming main crop, but more moisture could be damaging, farmers said. London Cocoa in September rose 0.3% to 1,746 pounds a tonne.