SOFTS-Raw sugar hits three-week high while cocoa also climbs

LONDON, April 29 (Reuters) - Raw sugar futures on ICE rose to a three-week high on Wednesday, boosted by further gains in energy markets, while cocoa prices also climbed.

SUGAR

Raw sugar SBc1 was up 2.3% at 14.43 cents per lb by 1352 GMT after touching its highest since April 8 at 14.49 cents.

Higher energy prices can lead to more use of cane to produce biofuel ethanol and therefore reduce sugar production.

Sugar production in Brazil's key centre-south region in the first half of April is expected to have fallen 26.4% year on year to 541,000 metric tons, a survey of analysts from S&P Global Commodity Insights showed on Tuesday.

The survey indicated that both cane and ethanol output is expected to have risen in the period.

White sugar LSUc1 gained 1.3% to $438.50 a ton.

COCOA

London cocoa LCCc2 rose 0.6% to 2,553 pounds a ton.

Dealers said concerns remained that a shortage of fertilisers and an El Nino weather event could curb global production in the 2026/27 season.

StoneX cut its forecast for a global cocoa surplus in the 2026/27 season to 149,000 metric tons from a previous projection of 267,000 tons.

There are also early signs that demand could be starting to recover after falling in 2025.

Oreos maker Mondelez International beat Wall Street estimates for first-quarter revenue and profit on Tuesday, helped by higher prices and resilient demand for its chocolates and biscuits.

New York cocoa CCc2 gained 0.7% to $3,405 a ton.

COFFEE

Arabica coffee KCc2 rose 0.7% to $2.9285 per lb.

Dealers said the arabica harvest in top producer Brazil should start to gather pace next month and generally dry weather is expected to aid early progress.

Robusta coffee LRCc2 lost 0.6% to $3,461 a ton.