Raw sugar futures extended gains due to a revised 2014/15 crop forecast by the industry association Unica, expecting Brazil's center-south cane crush to be lower than original expectations of 580 million tons in April at 546 million tons. The country's sugar output was pegged lower than the 32.5 million tons forecasted in April at 31.36 million tonnes, reports Reuters.
Brazil's main growing region's sugar output is still 6.4 percent higher during the season through the first half of August. According to the latest outlook from the London-based International Sugar Organization, it's possible that the global sugar market will register an oversupply of 1.31 million metric tons for the season.
The ISO said, "Any possible price recovery brought by production shocks over the course of 2014-15 might be muted by the huge stocks accumulated since the beginning of the surplus phase in 2010-11," according to The Wall Street Journal.
Benchmark ICE October raw sugar futures climbed above the seven-month low hit on Monday by 0.07 cent, or 0.5 percent, to 15.78 cents, while October whites on Liffe rose $3.10, or 0.7 percent, at $431.80 per ton, reports Reuters.
Meanwhile, cocoa for December delivery traded down at 0.1 percent to $3,216 a ton and cotton for December delivery rose 1.1 percent to 66.89 cents a pound.
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