LONDON: Raw sugar futures on ICE rose to a five-month high on Friday, driven by fund buying against a backdrop of diminishing production outlooks in Thailand and Russia. October raw sugar rose 0.12 cent, or 0.9%, to 13.23 cents per lb by 1411 GMT after touching a five-month high of 13.28 cents.
Dealers said a sharp drop in production in exporter Thailand in the 2019/20 season and expectations it could decline further in 2020/21 had created a more bullish outlook. They also noted concerns about production prospects in both Russia and the European Union that are likely to offset continued strong production in Brazil.
"The market is clearly not worried about the extra Brazilian sugar any longer. That sugar will find buyers now that Thailand and Russia look likely to produce a lot less sugar," Commonwealth Bank of Australia analyst Tobin Gorey said in a market note. October white sugar rose $2.10, or 0.55%, to $382.60 per tonne. December arabica coffee was down 0.1 cents, or 0.1%, at $1.18 per lb with the market failing to build on the prior session's steep gains.
November robusta coffee rose $6, or 0.4%, to $1,388 a tonne, edging back up towards last week's 7-1/2 month peak of $1,420. December New York cocoa rose $11, or 0.4%, to $2,492 a tonne, moving up towards a five-month high of $2,535 set on Monday. December London cocoa rose 21 pounds, or 1.2%, to 1,717 pounds per tonne.
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