Raw sugar hits 19-month high on Brazil weather fears; coffee gains
Raw sugar futures on ICE rose 4% to a 19-month high of 20.73 cents per pound, driven by concerns over excess El Nino-linked rains in top grower Brazil impacting output. Arabica coffee also gained.
(Adds comments and closing prices) NEW YORK, Oct 5 (Reuters) — Raw sugar futures on ICE rose 4% on Monday, climbing above 20 cents per pound to a 19-month high as concerns over further El Nino-linked excess rains in top grower Brazil grew. 81 cents. 7% last week. "Given record September rainfall (in Brazil) and an outlook for more right through October, it seems the market is convinced sugar (output) will fall well short of estimates," analysts at Green Pool said.
There are also some delays in loading sugar at Brazilian ports due to the weather, dealers said. El Nino is expected to adversely affect crops in all three top sugar growers — Brazil, India and Thailand. The coming EU crop is also set to fall sharply due to this summer's drought. 50.
6% last week. Arabica has been boosted near term by quality concerns owing to excess El Nino-linked rains in top grower Brazil, and worries the weather pattern might cause dryness ahead. Sucafina's David Behrends said while a large Brazil crop is still expected in 2026/27, some players remain bullish near term due to tight stocks and elevated physical prices in Colombia and Central America. Dealers noted a nearly 5% jump on the Brazilian currency, the real, on Monday after election results boosting chances for right-wing presidential candidate Flavio Bolsonaro.
A stronger local currency usually slows farmer selling. 7% to $3,528 a ton. 2%. 4%, to £4,382 per ton.
Dealers said cocoa remains range-bound overall, stuck between surplus supplies at present and a worsening outlook for 2026/27 linked to El Nino. Ivory Coast's main crop is seen falling around 17% this season, according to a Reuters survey, while Ivorian farmers said Monday poor rainfall risks bringing the September-to-February main crop to an early end. Cocoa arrivals at Ivorian ports stood at 18,000 metric tons in the week to October 4, bringing the total since the 2025/26 season start to 54,500 tons. 5% to $5,867 a ton.
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