LONDON: White sugar futures on ICE rose on Monday to their highest in more than five weeks on the back of short-covering ahead of the expiry of the August contract this week, while cocoa also rose in light volume.
SUGAR
August white sugar rose $8.60, or 2.06 percent, to $426.70 a tonne by 1111 GMT, after hitting a peak of $427.90, the highest for the front position since June 1.
Prices were supported by a bout of short-covering ahead of the August expiry on Friday, dealers said.
"I think a few people have just been caught a bit short," said one dealer.
White sugar has climbed steadily in recent sessions, amid expectations for tighter nearby supplies in the months before additional European Union sugar emerges into the market.
The possibility of India raising its raw sugar import duty has also fuelled expectations that the world's top consumer could be forced to import white sugar later in the season as its internal stocks dwindle.
October raw sugar rose 0.20 cents, or 1.41 percent, to 14.35 cents per lb, the highest for the front-month since June 12.
Dealers said supportive technicals inspired further short-covering, following last week's positive close. Producers were also taking a breather from selling, which also provided support.
"We could see a bit more of a break in producer pricing, giving the option for some short-covering by the funds," one dealer said. "So there is definitely opportunity for further strength. But whether it can be sustained, we are very doubtful."
COCOA
September New York cocoa climbed $22, or 1.18 percent, to $1,894 a tonne, regaining some ground after slumping along with other commodities last week.
September London cocoa rose 13 pounds, or 0.87 percent, to 1,502 pounds a tonne.
The July contract rose a more modest 9 pounds, or 0.61 percent, to 1,496 pounds a tonne ahead of expiry on Friday.
Speculators increased their net short position in London cocoa by 2,865 lots to 13,105 lots as of July 4, exchange data showed on Monday.
The market awaited European grind figures, due out on Tuesday, for latest indications of demand.
COFFEE
September robusta coffee fell a marginal $1, or 0.05 percent, to $2,110 per tonne.
September arabica coffee rose 0.15 cent, or 0.12 percent, to $1.2905 per lb.
Colombia's coffee crop may fall below 14 million 60-kg bags this year, the head of the coffee growers' federation said on Friday.
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