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2026-05-29 20:06:31
Raw sugar rebounds 2.2% from four-week low, supported by supply concerns in Brazil and India. ⑴ Raw sugar futures rose 2.2% to 14.24 cents per pound on Friday, rebounding sharply from a four-week low hit on Thursday, despite a sharp drop in oil prices due to the possibility of a US-Iran ceasefire. ⑵ Brazil, the largest sugar producer, has had a strong sugarcane harvest, but analysts say it may be too much to expect Brazilian sugar production to maintain its current strong pace. Meanwhile, concerns are rising about the monsoon outlook in India, the second-largest sugar producer. ⑶ India predicts that El Niño in 2026 will weaken the monsoon, bringing the lowest rainfall in 11 years, raising concerns about crop, food prices, and economic growth. Higher energy prices typically benefit sugar prices as they encourage sugar mills to produce more ethanol fuel than sugar. ⑷ Arabica coffee fell 1.7% to $2.6955 per pound. Declining exports from Colombia, the second-largest Arabica coffee grower, have tightened the market recently, but Brazil expects a bumper harvest to significantly improve supply, although harvest progress is currently slow. (5) London cocoa prices dipped slightly by 0.1%, while New York cocoa prices fell by 0.6%. Analysts stated that the crop conditions in Côte d'Ivoire were good, providing a positive outlook for the main crop season starting in the second half of the year.
