SOFTS-Raw sugar tumbles from five-month high as oil prices fall

LONDON, March 25 (Reuters) - Raw sugar futures on ICE tumbled from the previous session's five-month high on Wednesday as reports that the U.S. is seeking a ceasefire with Iran weighed on oil prices.

SUGAR

Raw sugar SBc1 lost 1.9% to 15.58 cents per lb by 1558 GMT, having set a five-month high of 15.91 cents on Tuesday.

Sugar had been boosted by fears that higher energy prices could prompt cane mills in top grower Brazil and elsewhere to lower sugar output in favour of ethanol, a cane-based biofuel.

But dealers said speculators have since paused their short-covering bets on price falls.

"Does that mean the upside correction (in sugar) is finished? No, but it will either take another jump in crude or an actual confirmation of El Nino showing up," said broker and consultant Michael McDougall.

White sugar LSUc1 fell 1.5% to $455.80 a metric ton after hitting a 5-1/2 month high of $463.60 on Tuesday.

COFFEE

Arabica coffee KCc1 edged up 0.2% to $3.1840 per lb, after setting a seven-week high of $3.1950 on Tuesday.

Coffee is under pressure from the prospect of a record crop in top grower Brazil this year, but there is near-term tightness with farmers there said to be holding back sales.

Robusta coffee LRCc2 fell 0.7% to $3,637 a ton after gaining 0.7% on Tuesday.

COCOA

London cocoa LCCc1 fell 3% to 2,328 pounds a ton.

Cocoa is under pressure from a generally favourable outlook for crops in West Africa coupled with weak demand, though much of that is priced in for now.

"The bearish trend established since early 2025 remains intact, though there is currently a lack of momentum for any significant directional shift," one dealer said.

New York cocoa CCc1 slid by 3% to $3,139 a ton, having gained 1.7% on Tuesday.