Raw sugar futures on ICE reached a new 6.5-year high on Monday due to lower-than-expected production in key regions, leading to supply tightening. Meanwhile,

arabica coffee prices also climbed to a two-week high. The markets for London-based cocoa, robusta coffee, and white sugar were closed on Monday for the Easter holiday.

In terms of sugar, May raw sugar SBc1 settled 0.05 cents, or 0.2%, lower at 23.56 cents per lb after hitting a high of 23.82 cents per lb earlier in the day, marking the highest since October 2016. Analysts Green Pool noted that the bulls now control the market, making the market's future direction uncertain. The earlier-than-normal closure of many sugar mills in India is among the supportive factors cited by dealers. Green Pool also noted that an increase in sucrose diversion to ethanol, as well as less cane for crushing in western India, has contributed to a decrease in production. However, rains are expected in Brazil this week, which could slow down the early harvest pace.

As for coffee, May arabica coffee KCc1 reached $1.826 per lb, settling 1 cent, or 0.5%, lower after hitting a two-week high of $1.868. While there are signs of improvement in the medium term, dealers stated that the market's availability remains tight. According to consultancy Safras & Mercado, the world's largest producer and exporter Brazil projected that the new coffee crop (2023/24) will reach 66.6 million 60-kg bags, representing a 13% increase over the previous crop.

In cocoa, July New York cocoa CCc2 settled $3, or 0.1%, higher at $2,922 a tonne. Dealers observed that supplies remain tight due to a second successive global deficit in the current 2022/23 season. Analyst Jack Scoville with The Price Futures Group commented that trends remain up for at least the short term. Photo by Editor at Large, Wikimedia commons.