LONDON: Raw sugar futures on ICE rose on Wednesday in thinly traded markets as the dollar fell, with investor risk appetite growing on expectation of an imminent post-Brexit trade deal between Britain and the European Union.
A weak dollar makes dollar-priced commodities like sugar cheaper for non-US investors.
March raw sugar rose 2.2% to 14.86 cents per lb at 1547 GMT.
Reuters reported, citing sources, that EU states have started to prepare their procedure to put in place a new trade deal with Britain from Jan. 1, indicating a deal could be imminent.
Dealers noted sugar has rebuffed negative news headlines in recent days, which indicates investors are looking to move into commodities as they expect a growth revival and inflation next year.
Data showed China’s sugar imports in November surged 115.2% year-on-year to 710,000 tonnes.
Ukrainian sugar refineries have produced 984,300 tonnes of white sugar in the production year which began on Sept. 1, the national sugar union said.
March white sugar rose 1.4% to $406.20 a tonne.
March London cocoa fell 0.6% to 1,643 pounds per tonne as sterling rallied.
A stronger pound makes sterling-priced London cocoa costlier for non-British investors.
March New York cocoa rose 0.8% to $2,489 a tonne.
March arabica coffee rose 0.2% to $1.2640 per lb, heading for a third consecutive week of gains.
March robusta coffee slipped 0.4% to $1,374 a tonne.—Reuters
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