LONDON: Raw sugar futures on ICE rose to a 7-1/2 month high on Monday, boosted by fund buying against a backdrop of uncertainty about the extent to which India might subsidise exports in the current season, while cocoa prices also climbed.
March raw sugar was up 0.28 cents, or 1.9%, to 14.71 cents per lb at 1358 GMT, after setting a 7-1/2 month peak of 14.72 cents.
Dealers noted fund buying had helped to fuel the recent run-up, with weekly CFTC data showing a further increase in bullish bets.
The market was supported by the lack of an announcement from India on export subsidies for the 2020/21 season.
Analysts Green Pool said in note that India had exported a record 5.84 million tonnes in 2019/20, with the export subsidy level equating to six to seven cents per lb.
"India's Covid crisis is a major budget issue for government and perhaps the finance ministry is making the case that subsidies are wasteful," Green Pool said.
India needs to export 6 million tonnes of sugar in the 2020/21 marketing year started on Oct. 1 as production is set to jump on a higher planted area, a leading trade body said on Monday.
December white sugar rose by $5.50, or 1.4%, to $401.50 a tonne.
March London cocoa was up 25 pounds, or 1.5%, at 1,666 pounds a tonne, pulling away from an eight-week low of 1,627 pounds set on Friday.
Dealers were keeping a close watch on rising tensions in top grower Ivory Coast ahead of next week's presidential election. December New York cocoa was up $56, or 2.4%, at $2,417 a tonne.
December arabica coffee fell by 0.65 cents, or 0.6%, to $1.0660 per lb.
January robusta coffee rose by $1, or 0.1%, to $1,298 a tonne.
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