LONDON: Raw sugar futures on ICE rose to a five-month high on Thursday as funds extended long positions and coffee and New York cocoa prices also advanced.
October raw sugar rose 0.27 cent, or 2.1%, to 13.11 cents per lb by 1406 GMT after climbing to a five-month high of 13.12 cents.
Dealers said the run-up gathered momentum after the breach of resistance at 13.00 cents with a strong close on Wednesday helping to create a more bullish outlook on price charts.
Other supportive factors include the prospect of a further drop in production in Thailand in the 2020/21 season and demand from Pakistan and China.
October white sugar rose $5.10, or 1.4%, to $380.30 a tonne. December arabica coffee rose 2.95 cents, or 2.6%, to $1.1720 per lb, climbing back towards last week's 4-1/2 month peak of $1.2890.
Dealers noted a rebound in Brazil's real provided some support. The weakness of the currency of the world's top producer contributed to the decline in prices during the last few days.
November robusta coffee rose $18, or 1.3%, to $1,360 a tonne. Dealers continued to monitor the spread of the coronavirus in top robusta producer Vietnam given concern it could disrupt the flow of supplies.
Vietnam's domestic coffee prices were flat this week as trading activity was impacted by low stocks and coronavirus lockdowns in some parts of the coffee-growing areas, traders said on Thursday.
December New York cocoa rose $12, or 0.5%, to $2,477 a tonne as the market continued to consolidate after retreating from a five-month high of $2,535 set on Monday.
December London cocoa fell 9 pounds, or 0.5%, to 1,688 pounds per tonne, weighed down in part by sterling's strength against the dollar.
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