The futures prices of sugar crude oil fell nearly 3% on ICE on Tuesday, partly hit by concerns that mills will increase the amount of cane used to make the sweetener instead of ethanol in Brazil as fuel prices fall.
Sugar
- Raw sugar for October was down $0.57 cents, or 2.9%, to $18.84 cents a lb.
- Dealers said weaker ethanol prices in Brazil could boost sugar production in the south-central region as mills find it more profitable to produce the sweetener.
- Raw sugar futures added to losses after Petrobras announced a cut in gasoline prices, the first such move since December. The measure tends to increase pressure on ethanol prices.
- White sugar for October was down $14.50, or 2.6%, to $539.60 a ton.
Coffee
- September Arabica coffee prices rose $1.3 cents, or 0.6%, to $2,165 a lb, as the market consolidated after rising nearly 8% on Monday.
- Dealers said the purchase of roasters contributed to higher prices along with a weaker dollar. They also noted that US green coffee inventories increased less than average for this time of year, while spot market spreads remained high.
- A further drop in ICE certified inventories to 727,222 bags (the lowest level since August 1999) also helped support prices.
- September robusta coffee rose $6, or 0.3%, to $1,998 a ton.
Sources: investing.com
