LONDON: White sugar futures rose further on Thursday as speculators sought to cover shorts amid worries about a nearby supply crunch, while a weaker pound lifted London cocoa to its highest in nearly two months.
SUGAR
December white sugar was up $1.40 or 0.4 percent at $377.10 a tonne by 1107 GMT, after rising to $379.70, the highest for the front month since Sept. 18.
This extended gains from the previous day, when short-covering triggered a 2.8 percent jump and lifted the spot contract to a premium over the March position for the first time in six months.
The premium for the spot contract widened on Thursday, peaking at $2.30, the highest since early March.
Dealers pointed to enduring worries about nearby supplies, as European Union sugar is not expected to hit the market in time for December delivery.
White sugar from Thailand and Central America is also not yet available, while Brazil is refining less sugar amid low margins, dealers said.
"The EU hasn't really fully come on stream - it will do but it's too early," said one dealer. "And the low global prices have encouraged offtake. More demand is chasing less supply."
Speculators kept seeking to cover shorts on Thursday, although dealers said willing sellers were scarce.
"They're covering into a sort of a vacuum, because the producers aren't there to provide the liquidity," the dealer said.
March raw sugar was up 0.02 cent, or 0.1 percent, at 14.27 cents per lb.
The market was capped, however, by crop-friendly rains in top grower Brazil and producer hedging.
COCOA
December London cocoa was up 9 pounds, or 0.6 percent, at 1,567 pounds a tonne, after hitting 1,575 pounds, the highest since Aug. 8.
Prices were boosted by a weaker British pound, which hit a three-week low on Thursday amid fresh political uncertainty.
December New York cocoa fell $1 or 0.05 percent to $2,077 a tonne.
Ivory Coast had exported 1,329,694 tonnes of raw cocoa beans by the end of August, up more than 19 percent from a year earlier, provisional port data showed on Wednesday.
COFFEE
December arabica coffee was up 0.05 cent, or 0.04 percent, at $1.2520 per lb.
November robusta coffee was down $6 or 0.3 percent at $2,009 a tonne.
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