Raw sugar futures on ICE closed slightly down on Wednesday but still trading above a recent four-year low, getting some support from rising energy prices, while coffee prices also fell.
Sugar and energy prices are linked as sugarcane can be used to either produce the sweetener or biofuel ethanol.
SUGAR
* Raw sugar SB1! settled down 0.06 cent, or 0.4%, at 16.42 cents per lb, having hit a low at 16.34 during the session, just above Friday’s four-year low of 16.32 cents.
* Dealers said the overall mood remained bearish with early monsoons boosting the outlook for crops in Asia, including India, Thailand and China.
* The market was awaiting the release in the next few days of cane and sugar production data for the key Center-South region of Brazil covering the second half of May.
* A survey of analysts issued by S&P Global Commodity Insights had sugar production rising by 4.7% to 2.84 million metric tons in the period.
* White sugar SF1! rose 1.1% to $472.80 a ton.
COFFEE
* Arabica coffee KC2! settled down 4.45 cents, or 1.3%, at $3.486 per lb.
* Dealers said the harvest in top grower Brazil continues to make steady progress with the weather generally favourable.
* Brazilian green coffee exports fell almost 36% in May compared to the same month a year ago, totalling 2.60 million 60-kg bags, according to data released by local exporters’ group Cecafe on Tuesday.
* Broker Hedgepoint Global Markets said in a note that falling arabica certified stocks at ICE and forecast for more cold weather in Brazil could offer some support to prices, but the long-term outlook is more bearish due to the ample robusta crops in Brazil and Indonesia.
* Robusta coffee RC2! fell 0.6% to $4,291 a ton.
COCOA
* London cocoa C2! settled down 55 pounds, or 0.9%, to 6,349 pounds per ton.
* Dealers said the market was weighed down by improving crop prospects in West Africa for the 2025/26 season following recent rains.
* New York cocoa CC2! gained 0.4% to $9,069 a ton.