LONDON: Raw sugar futures rose on Thursday after data showed top producer Brazil’s sugarcane crush fell sharply in the first half of April, though a strong dollar kept gains in check.
SUGAR
May raw sugar, which expires on Friday, rose 1.7% to 19.35 cents per lb at 1626 GMT, having hit its lowest level since March 18 at 18.80 cents on Wednesday.
Brazil’s center-south sugarcane crushing fell 66.9% in the first half of April versus a year ago, sharply below market expectations.
On the downside, however, the dollar index rose to its highest in five years versus a currency basket on Thursday. A stronger US currency makes dollar-priced commodities such as sugar costlier for non-US investors.
Rabobank said it expects sugar prices to average 19.60 cents in the third quarter, up from 19.30 cents in the second, given potential Russian energy export disruptions, global fertiliser shortages and tensions linked to the forthcoming Brazilian election.
August white sugar rose 0.7% to $527.10 a tonne.
COFFEE
July arabica coffee rose 0.4% to $2.1640 per lb, having hit the lowest level since March 30 at $2.1455 on Wednesday. “Demand is the overriding concern (in coffee). Increasing chances of a prolonged war and recession in Europe lead to caution, especially given very high prices and a drop in disposable income,” Rabobank said in a note.
July robusta coffee rose 0.8% to $2,049 a tonne.
COCOA
July New York cocoa rose 1.3% to $2,570 a tonne, recovering some ground after Tuesday’s fall to an eight-week low of $2,478.
Cocoa, like coffee, is under pressure from concerns over weak demand.
July London cocoa rose 1.4% to 1,806 pounds per tonne.
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