LONDON: Raw sugar futures on ICE rose on Friday, boosted by a pick-up in physical demand after recent declines helped to tighten nearby supplies. March raw sugar was up 0.17 cents, or 0.9 percent, at 19.75 cents per lb at 1131 GMT. The front month had dipped to a low of 19.57 cents on Wednesday, its weakest since Sept. 1.
"There is a lot of business going on at these levels, raws and whites. All the demand we are seeing is spot," one London dealer said, adding that demand is likely to increase supply tightness in the first quarter of next year.
Raw sugar prices have been falling as funds scaled back a large net long position. Marchs raws have fallen by about 18 percent from a contract high of 24.10 cents set on Sept. 29.
Dealers said that supplies should tighten as production in Brazil winds down for the season.
"It looks a bit tight until the next Brazilian crop starts in May/June," one dealer said, adding that March's premium to May had widended on Friday to about 57 points, up from about 50 points on Wednesday. The ICE raw sugar futures market was closed on Thursday for the US Thanksgiving holiday.
March white sugar was up $2.60, or 0.5 percent, at $525 a tonne.
Coffee futures were also higher, with January robusta up $16, or 0.8 percent, at $2,038 a tonne and March arabica advancing 0.15 cents, or 0.1 percent, to $1.5785 per lb.
Dealers said the harvest in top producer Vietnam had picked up, helped by favourable weather.
An industry official said on Thusday that half the total area in the top growing province of Daklak had been picked and that bean quality was good. Cocoa futures were slightly lower, with the New York market consolidating just above a recent three-year low.
March New York cocoa was off $8, or 0.3 percent, at $2,431 a tonne. The second position fell to a low of $2,358 last week, its weakest since August 2013.
Dealers said that conditions remain favourable for crops in West Africa and that a global surplus is now widely forecast for the 2016/17 season.
March London cocoa fell 1 pound to 1,994 pounds a tonne.
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