Raw sugar heads back near last week's 3-1/2 yr highs

LONDON: Raw sugar prices on ICE headed back near last week's 3-1/2 year highs on Thursday as funds remain keen on commodities, especially those with near term supply tightness like sugar.

Arabica coffee retreated after the prior session's 3% surge.

SUGAR

March raw sugar rose 1.9% to 16.14 cents per lb at 1257 GMT, nearing last week's high of 16.33 cents.

"The momentum has been maintained and this may encourage further fund buying," said a dealer.

He added while more selling above 16 cents will be found, it will likely be in the later month contracts, with March set to test last week's 3-1/2 year peak.

Suedzucker, Europe's largest sugar producer, confirmed it has cut its forecast of full-year profits because of the coronavirus crisis and a tough sugar market.

March white sugar rose 1.3% to $452 a tonne.

COFFEE

March arabica coffee fell 0.5% to $1.2665 per lb, having settled up 3.2% on Wednesday.

Arabica is gaining support from a strengthening Brazilian real, which reduces dollar-denominated coffee prices in local currency terms in Brazil, and can deter producer selling.

There is little evidence efforts by the world's top coffee roasters and traders to prevent human rights and environmental abuses are having impact, with most farmers operating at a loss and unable to produce sustainably, a major coffee report said.

March robusta coffee fell 0.6% to $1,324 a tonne.

There was little trading activity in top robusta producer Vietnam on Thursday due to tepid demand and shortage of shipping containers since last month.

COCOA

March New York cocoa fell 0.5% to $2,444 a tonne.

Dealers said the market was performing comparatively well after a sharp fall in prices early this month, but fundamentals remain bearish with demand weak and supplies more than ample.

March London cocoa fell 0.2% to 1,644 pounds per tonne.