LONDON: Raw sugar futures were lower on Tuesday, extending a retreat from last week’s five-month peak, dragged down primarily by weakness in crude oil prices.

Lower energy prices reduce the incentive for mills in Brazil to produce biofuel ethanol, a cane-based fuel, which can lead to increased production of sugar.

Sugar

May raw sugar was down 1.8% at 19.90 cents per lb at 1303 GMT. The front month hit a five-month peak of 20.51 cents last week.

Oil prices slipped in volatile trading on Tuesday as investors weighed demand concerns against tight global supplies after Libya halted some exports and as factories in Shanghai prepared to reopen following a COVID-19 shutdown.

Brazil’s centre-south (CS) region is expected to increase production of both sugar and ethanol in the new season that started this month, with fields partially recovered from the worst drought in 90 years last season, consultancy JOB Economia said on Monday.

August white sugar fell 0.9% to $544.70 a tonne.

A total of 299,150 tonnes of mostly Indian white sugar has been tendered against the May contract on ICE Futures Europe, exchange data showed on Tuesday.

Cocoa

July New York cocoa fell 0.6% to $2,562 a tonne.

Dealers said North American first-quarter cocoa grind data, due to be issued on Thursday, would provide a short-term focus after last week’s European first-quarter data showed a 4.4% rise year on year.

July London cocoa fell 1.9% to 1,769 pounds a tonne.

Coffee

July arabica coffee rose 0.1% to $2.24 per lb.

July robusta coffee fell 1.05% to $2,077 a tonne, partly reflecting losses in the arabica market on Monday.

There was no trading in London-based robusta futures on Monday because of a public holiday.