Wednesday, 22 February 2012 23:27
NEW YORK/LONDON: Raw sugar extended its gains and rose to a 3-1/2-month high on Wednesday, in-part due to concerns about nearby supply tightness, while cocoa futures hit a four-week high after climbing above a key technical level.
Coffee futures consolidated lower.
March raw sugar on ICE was up 0.35 cent, or 1.4 percent, at 25.70 cents a lb at 12:47 p.m. EST (1747 GMT) after earlier rising to 25.81 cents, the highest level for the front month since mid-November 2011. The contract continued to climb in choppy dealings after closing above the 200-day moving average at 25.34 cents on Tuesday.
Dealers said there was talk that one major trade house may take delivery of most, if not all, the raw sugar delivered against the March contract which expires on Feb. 29.
"With expectations that a potential receiver is looking to take March (raws) on, the structure is firming and, in the short term, this ...