LONDON: White sugar futures on ICE rose to their highest level in nearly four years on Friday with the market buoyed by the strength of front month March in the run-up to next week’s expiry.
March white sugar rose $3.50, or 0.75%, to $468.90 per tonne by 1510 GMT after peaking at $474.10, the highest level for the front month contract since April 2017.
Dealers noted there appeared to be significant interest in taking delivery of sugar when the March contract expires next Friday.
Interest in taking delivery has been buoyed by tightness in the physical market linked to a shortage of containers in countries such as India which has left the market more reliant on the break bulk supplies on which the contract is based.
March raw sugar rose 0.11 cents, or 0.7%, to 16.16 cents per lb.
May New York cocoa was up $3, or 0.1%, at $2,453 a tonne.
Dealers noted the premium for front month March to May had widened to around $117 from $89 at the close on Thursday as the market waited to see the extent to which there would be interest in taking delivery.
Strong demand to receive cocoa against the December contract late last year led to a sharp rise in the front month’s premium to more than $200 a tonne at one point.
May London cocoa fell 6 pounds, or 0.4%, to 1,657 pounds a tonne.
Cocoa arrivals at ports in top grower Ivory Coast reached 1.337 million tonnes between October 1 and January 31, down 3% from the same period last season, data from the cocoa regulator (CCC) showed on Friday. March arabica coffee rose 0.7 cents, or 0.6%, to $1.2475 per lb. March robusta coffee was up $1, or 0.1%, at $1,344 a tonne.
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