LONDON: Raw sugar futures rose to their highest level in nearly three months on Monday, boosted by emerging tightness in the physical market and downgrades to production expectations in India.
SUGAR
Green Pool said on Monday that it had trimmed its estimate of India's crop to 20.3 million tonnes from 20.5 million tonnes, driven by downgraded outlooks for Maharashtra and Karnataka.
"India needs to import 1-1.5 million tonnes of sugar - and the later it occurs, the more likely it will be white sugar rather than raw sugar for further processing in India," Green Pool said in a report.
March raw sugar futures was up 0.27 cents, or 1.3 percent, at 21.38 cents per lb by 1201 GMT after peaking at 21.49 cents, the highest for the front month since mid-November.
Dealers also said the tightness that had been expected in the physical market this quarter is now beginning to emerge. * March white sugar was up $5.20, or 0.9 percent, at $556.10 a tonne.
COCOA
New York cocoa edged higher, with the market consolidating just above Friday's level close to a four-year low.
New York March cocoa was up $10, or 0.5 percent, at $2,082 a tonne. The front month had dipped to a low of $2,052 on Friday, its weakest since March 2013.
Dealers said the market continued to be weighed down by the prospect of a large global surplus in the 2016/17 season.
Speculators also brought their bearish stance in New York cocoa to its highest level in nearly five years in the week to Jan. 31, US government data showed on Friday.
May London cocoa rose 8 pounds, or 0.5 percent, to 1,706 pounds a tonne.
COFFEE
Robusta coffee futures were marginally lower, with March down $3, or 0.1 percent, at $2,174.
Dealers said that funds had begun to scale back a large net position and the recent advance, which took prices near to a five-year high, was showing signs of running out of steam.
March arabica coffee was up 0.15 cents, or 0.1 percent, at $1.4640 per lb.
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