LONDON: Raw sugar prices on ICE surged to an 8-1/2 month high on Monday, boosted by nearby supply tightness, while cocoa futures were also sharply higher. March raw sugar rose 0.53 cents, or 3.5%, to 15.49 cents per lb by 1441 GMT after climbing to a peak of 15.50 cents, the highest level for the front month since Feb. 24.
Dealers noted the front month's premium to May had been rising on nearby supply tightness. A poor crop in Thailand this year has helped to tighten supplies while shipments from India have been hit by uncertainty about the extent to which government support might be available given financial issues related to the Covid-19 pandemic.
Dealers said the prospect of a poor crop in France provided further support for prices. March white sugar was up $13.40, or 3.3%, at $420.20 a tonne. A total of 618,300 tonnes of white sugar has been tendered against the December contract on ICE Futures Europe, exchange data showed on Monday.
March New York cocoa rose $60, or 2.5%, to $2,425 a tonne. March London cocoa rose 35 pounds, or 2.2%, to 1,643 pounds a tonne. March arabica coffee was up 2.4 cents, or 2.1%, to $1.1460 per lb. January robusta coffee rose $23, or 1.6%, to $1,433 a tonne.
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