Higher fuel oil prices may cause Brazilian factories to extract more ethanol from sugar cane
Arabica coffee futures for December delivery rose 1.5% to $2.0445 a pound.
Crude sugar prices climbed to a four-year high as soaring global energy prices further threatened supplies in Brazil, the largest crude sugar exporter.
Crude oil prices continue to rise, which could prompt Brazilian companies to extract more ethanol from sugar cane and reduce sugar production. The country's crops have been affected by drought and frost, raising concerns about tighter global supplies, with crude sugar futures on the New York market up more than 30 per cent this year.
Crude sugar futures for March delivery rose 0.2 per cent to 20.33 cents a pound after hitting 20.61 cents at one point, the highest level for a major contract since February 2017. Sugar in London rose 0.5%, rising for the fifth day in a row.
For other soft commodities, Arabica coffee futures for delivery in December rose 1.5% to $2.0445 a pound. Iron ore prices have risen nearly 60 per cent this year, mainly due to a decline in production in Brazil, the largest exporter.