LONDON, March 24 (Reuters) - Raw sugar futures on ICE rose sharply on Tuesday, buoyed by a rebound in crude oil prices, while arabica coffee also advanced on tightening supplies.
* May raw sugar was up 0.26 cents, or 2.4%, at 11.30 cents per lb by 1235 GMT. The front month fell to a 1-1/2 year low of 10.44 cents last week.
* “The market is likely to remain highly correlated with oil prices in the near-term. Sugar prices remain above what would be ethanol parity for Brazil’s mills,” Commonwealth Bank of Australia analyst Tobin Gorey said in a note.
* Brazilian mills are expected to make a sharp switch from ethanol to sugar production in the new season kicking off in the world’s largest sugarcane producer, as falling gasoline prices and a weak currency reduce the biofuel’s appeal, analysts said.
* Oil jumped 5% on Tuesday to above $28 a barrel, supported by steps by the U.S. Federal Reserve to bolster the economy and hopes the United States will soon reach a deal on a $2 trillion coronavirus aid package.
* May white sugar rose $5.70, or 1.7%, to $346.30 a tonne.
* May arabica coffee rose 1.60 cents, or 1.3%, to $1.2285 per lb.
* Dealers said the market was supported by potential disruptions to shipments out of Brazil linked to the coronavirus pandemic and declining stocks.
* They noted ICE certified stocks were continuing to decline.
* May robusta coffee rose $7, or 0.6%, to $1,251 a tonne.
* May New York cocoa fell $3, or 0.1%, to $2,254 a tonne.
* Dealers said an improving outlook for the mid-crop in Ivory Coast remained a bearish influence and concerns about weakening demand.
* May London cocoa was up 16 pounds, or 0.9%, at 1,862 pounds a tonne. (Reporting by Nigel Hunt; Editing by Bernadette Baum)