Recasts, includes closing prices and commentary
NEW YORK/LONDON, March 4 (Reuters) – Raw sugar futures on ICE gained more than 2% on Friday, hitting their best level since mid-December as oil prices continued to climb following Russia’s invasion of Ukraine.
Rising energy prices may prompt the sugar cane factories of Brazil’s main producer to divert production from sugar to ethanol.
* Can raw sugar SBc1 settled down 0.42 cents, or 2.2%, to 19.35 cents per pound after hitting the high since Dec. 16 earlier in the session at 19.48 cents per pound. The contract gained 6.4% in the week.
* Dealers said the funds were buying sugar in hopes that more Brazilian sugar cane would be diverted to ethanol as the Russia-Ukraine crisis continues to drive up energy prices. WHERE
* Brazilian oil company Petrobras, however, remained silent on any increase in fuel prices.
* Capping sugar gains, a leading Indian trade body said that thanks to favorable weather conditions, India could export a record 7.5 million tonnes of sugar in the 2021/22 season, or almost 25% more than the previous estimate.
* May white sugar LSUc1 rose $10.10, or 1.9%, to $532.30 per tonne.
* May arabica coffee KNc2 settled 1.35 cents, or 0.6%, at $2.2425 a pound after hitting a 3.5-month low at $2.2045. The contract lost 4.8% in the week.
* Coffee is under pressure from fears that any global economic slowdown linked to the Ukraine crisis could dampen demand. There are also fears that sales to the main Russian buyer could slow down because of the sanctions.
* Dealers also noted that some speculators, who hold a large long position in coffee, have liquidated contracts to move into assets with higher upside potential.
* May robusta coffee LRCc2 rose $25, or 1.2%, to $2,038 per tonne.
* May New York Cocoa CCc2 rose $58, or 2.3%, to $2,620 per tonne. The contract gained 1.3% in the week.
* Ghana’s cocoa arrivals since the start of the season from October 1 to February 10 stood at 430,000 tonnes, down 41.3% from the same period of the previous season, according to official figures.
* Ivory Coast’s top cocoa producer will launch a pilot project in April to trace cocoa beans from farm to market, in a bid to tackle issues such as deforestation and child labour.
* May London Cocoa LCCc2 gained 42 pounds, or 2.5%, to 1,743 pounds per ton.
(Reporting by Marcelo Teixeira and Maytaal Angel; editing by Jason Neely and Devika Syamnath)
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