LONDON: Raw sugar prices on ICE fell on Tuesday, weighed down partly by concerns that mills will increase the amount of cane used to produce the sweetener rather than ethanol in Brazil.
SUGAR
October raw sugar was down 2.3% to 18.96 cents per lb by 1450 GMT.
Dealers said weaker ethanol prices in Brazil could boost sugar production in the centre-south region as mills find it more profitable to produce the sweetener.
Rabobank said in a report that ethanol parity had fallen to 16.3 cents per lb likely due to upcoming tax changes which will lower petrol prices, noting the sugar mix during the rest of the season would be closely watched.
October white sugar fell 2.3% to $541.30 a tonne.
COFFEE
September arabica coffee fell 0.4% to $2.1435 per lb with the market consolidating after climbing by nearly 8% on Monday.
Dealers said roaster buying had contributed to the run-up in prices along with a weaker dollar.
A further decline in ICE certified stocks to 734,157 bags – the lowest level since August 1999 – also helped support prices.
September robusta coffee fell 0.45% to $1,983 a tonne.
COCOA
September New York cocoa rose 0.4% to $2,339 a tonne.
Dealers said second-quarter cocoa grind data, due to be issued on Thursday, would provide a short-term focus as they keep a close watch on whether global economic woes are beginning to impact consumption.
September London cocoa rose 0.5% to 1,722 pounds a tonne.
Source: Brecorder
