Raw sugar gains as oil prices rise; cocoa, coffee also up

By Reuters News

LONDON, Sept 28 (Reuters) - Raw sugar futures on ICE rose on Monday as oil headed higher and the contract recovered from Friday's losses. Cocoa and coffee also headed higher.

SUGAR

* Raw sugar rose 1.3% to 17.73 cents per lb at 1214 GMT, having ​settled down 0.5% on Friday.

* Oil prices rebounded more than 3% on renewed US-Iran tensions, boosting sugar by tempting cane mills to ramp up output of cane-based ethanol at the expense of sugar.

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

* Sugar headed higher in recent weeks as excess rains in Brazil disrupted harvesting, but investors are growing reticent to bet on further gains especially as the remainder of September should be dry.

* Also, key sugar consumer India is witnessing an unprecedented food safety crackdown, with authorities forcing restaurants to suspend operations and debating a red hexagonal stamp for food products high in sugar, salt or fat.

* White sugar rose 1.1% to $507.90 a metric ton.

COCOA

* London cocoa rose 0.4% to £4,377 per ton, having posted a 7% weekly gain last week.

* Ivory Coast has set its 2026/27 farmer price at around $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 metric tons in the week ending September 27, bringing the total since the 2026/27 season start to 36,500 tons.

* New York cocoa rose 0.9% to $5,794 a ton.

COFFEE

* Arabica coffee rose 0.9% to $2.7355 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 0.5% to $3,360 a ton.

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