SOFTS-Raw sugar hits three-week high while cocoa also climbs
Mondelez International, Inc. Class A MDLZ | 0.00 |
Adds background, updates prices
LONDON, April 29 (Reuters) - Raw sugar futures on ICE rose to a three-week high on Wednesday, boosted by further gains in energy markets, while cocoa prices also climbed.
SUGAR
* Raw sugar SBc1 was up 2.3% at 14.43 cents per lb by 1352 GMT after touching its highest since April 8 at 14.49 cents.
* Higher energy prices can lead to more use of cane to produce biofuel ethanol and therefore reduce sugar production.
* Sugar production in Brazil's key centre-south region in the first half of April is expected to have fallen 26.4% year on year to 541,000 metric tons, a survey of analysts from S&P Global Commodity Insights showed on Tuesday.
* The survey indicated that both cane and ethanol output is expected to have risen in the period.
* White sugar LSUc1 gained 1.3% to $438.50 a ton.
COCOA
* London cocoa LCCc2 rose 0.6% to 2,553 pounds a ton.
* Dealers said concerns remained that a shortage of fertilisers and an El Nino weather event could curb global production in the 2026/27 season.
* StoneX cut its forecast for a global cocoa surplus in the 2026/27 season to 149,000 metric tons from a previous projection of 267,000 tons.
* There are also early signs that demand could be starting to recover after falling in 2025.
* Oreos maker Mondelez International beat Wall Street estimates for first-quarter revenue and profit on Tuesday, helped by higher prices and resilient demand for its chocolates and biscuits.
* New York cocoa CCc2 gained 0.7% to $3,405 a ton.
COFFEE
* Arabica coffee KCc2 rose 0.7% to $2.9285 per lb.
* Dealers said the arabica harvest in top producer Brazil should start to gather pace next month and generally dry weather is expected to aid early progress.
* Robusta coffee LRCc2 lost 0.6% to $3,461 a ton.
