Raw sugar steadies as dealers weigh better Brazilian weather against higher oil prices

LONDON, Sept 28 (Reuters) - Raw sugar futures on ICE steadied on Monday as dealers weighed improved weather in top grower Brazil against higher oil prices. Cocoa and coffee prices strengthened.

SUGAR

* Raw sugar lost 0.7% to 17.37 cents per lb by 1437 GMT, having ​traded higher earlier in the session.

* Oil prices rebounded more than 2% on renewed US-Iran tensions, boosting sugar by tempting cane mills to ramp up output of cane-based biofuel ethanol at the expense of sugar.

* Top EU sugar producer Suedzucker SZUG.DE has raised core 2026/27 earnings expectations on higher demand for biofuels.

* Sugar has mostly headed higher in recent weeks as rain in Brazil disrupted harvesting, but investors are growing reticent to bet on further gains at these price levels, especially as the remainder of September should be much drier.

* Major sugar consumer India is witnessing an unprecedented food safety crackdown, with authorities forcing restaurants to suspend operations while also debating the use of warning labels on food products high in sugar, salt or fat.

* White sugar rose 0.4% to $504.70 a metric ton.

COCOA

* London cocoa slipped 0.3% to £4,191 a ton, having posted a 7% gain last week.

* Ivory Coast has set its 2026/27 farmer price at about $2.12 per kg while Ghana's new price works out at around $3.57 per kg, raising smuggling concerns.

* Dealers noted rainfall in No.3 grower Ecuador has been well above average of late while rains in Ivory Coast and Ghana have been spotty and more are needed.

* Cocoa arrivals at ports in top grower Ivory Coast stood at 16,000 tons in the week ending September 27, bringing the total since the start of the 2026/27 season to 36,500 tons.

* New York cocoa edged up by 0.1% to $5,626 a ton.

COFFEE

* Arabica coffee rose 4% to $2.8965 per lb​​, having fallen 5.4% last week.

* Arabica remains under pressure from expectations that Brazil harvested a record 2026/27 crop, but dealers said increased quality concerns might mean actual coffee available for commercial use disappoints.

* Robusta coffee rose 1.8% to $3,425 a ton.