Brazilian sugar exports in the 2019/20 season will likely hit a 12-year low, totalling just 18.5 million tonnes as depressed global sugar prices steer cane mills away from export markets, consultancy JOB Economia said in a report on Wednesday. "Sugar is hardly worth exporting any more given the low prices. Instead, the sugar mills are increasingly producing ethanol," Commerzbank said in a market note.
The crude oil market also continued to influence sugar prices with its strong rally on Monday sending October raws to a peak of 11.34 cents on Monday, its highest since Sept. 3. Oil prices rose sharply on Thursday, supported by supply risks as the market assesses the fallout from last weekend's drone attacks on Saudi oil infrastructure.
December white sugar was up $1.50, or 0.5%, at $322.50 per tonne. December arabica fell 1.50 cents, or 1.5%, to 98.85 cents per lb after touching a low of 98.60 cents, its weakest since Sept. 10. Dealers said the market was weighed partly by the weakness of the currency of top producer Brazil. November robusta coffee was down $16, or 1.2%, at $1,303 a tonne. December New York cocoa was up $40, or 1.7%, at $2,441 a tonne after rising to a peak of $2,446, the highest for the front month since July 26.
Dealers said the market was supported by technically driven buying while proposals by Ivory Coast and Ghana to introduce production ceilings to boost prices also provided background support. December London cocoa rose 23 pounds, or 1.25%, to 1,861 pounds a tonne.