SOFTS-Raw sugar steadies near 3-week high; London cocoa hits 2-1/2-month peak

LONDON, May 1 (Reuters) - Sugar futures on ICE steadied near a three-week high on Friday and were headed for a weekly gain of 6% as energy prices remained elevated, while London cocoa hit a 2-1/2-month peak.

SUGAR

Raw sugar SBc1 was up 0.8% to 14.73 cents per lb at 1219 GMT, after earlier matching Thursday's three-week peak of 14.77.

Analyst Green Pool raised its 2026/27 global sugar deficit forecast to 4.3 million metric tons from 1.66 million previously as high energy prices encourage Brazilian mills to use cane to make ethanol rather than the sweetener.

"The outlook for ethanol production has firmed up due to a firmer Brazilian real, higher global gasoline prices and increasing odds that Brazil will change fuel taxes and/or increase the ethanol blend in gasoline," the analyst said.

Deliveries of raw sugar on the expiry of the May contract on the ICE exchange were seen at around 483,400 tons, according to preliminary information from two sugar traders.

ICE will release official delivery data on Friday.

White sugar LSUc1 rose 1% to $443.10 a ton.

COCOA

London cocoa LCCc2 was down 1.1% to 2,640 pounds a ton, pulling back from an earlier 2-1/2-month high. It was heading for a weekly gain of 3%.

Cocoa is gaining support from concerns that a shortage of fertilisers and a looming El Nino weather event could curb 2026/27 production.

"Cocoa prices have likely bottomed and could rebound in the remaining part of the year, which might be exacerbated by a stronger El Nino," said Citi in a note.

In demand side news, U.S. candy maker Hershey beat first-quarter earnings estimates as GLP-1 users drove demand for its healthier snacks, but recorded a 4% fall in confectionery sales volumes.

New York cocoa CCc2 fell 0.6% to $3,546 a ton.

COFFEE

Arabica coffee KCc2 fell 1% to $2.8275 per lb, heading for a weekly fall of 4%.

The prospect of a bumper coffee harvest in top grower Brazil is weighing on prices.

"Arabica could be an outlier commodity, where the net effect from a strong El Nino could be positive for yields (in Brazil)," said Citi.

Robusta coffee LRCc2 dipped 0.1% to $3,358 a ton.