LONDON: Raw sugar futures on ICE climbed to a five-week high on Thursday, boosted by tightening supplies and a weakening dollar, while arabica coffee prices also advanced.
Raw sugar prices ended the year up 15.4% higher. New York cocoa was up slightly on the year and Arabica coffee was down slightly.
March raw sugar settled up 0.21 cents, or 1.4%, at 15.49 cents per lb, after touching a five-week high of 15.53 cents.
Dealers said investors were re-establishing long positions after scaling them back for most of the month.
Supportive factors included the prospect of a further decline in production in major exporter Thailand, where the harvest is off to a slow start and drought appears to be taking its toll on cane yields.
The front month posted an annual gain of about 15.4%, with the International Sugar Organization forecasting a global deficit of 3.5 million tonnes in the 2020/21 season.
March white sugar settled up $2.50, or 0.6%, at $420.90 a tonne. The contract was up 17.2% on the year.
March arabica coffee settled up 2.85 cents, or 2.3%, at $1.2825 per lb.
The front month is on track for a small loss of 1.1% on the year after a huge crop in Brazil, though the prospect of a smaller crop in the South American country next year has helped to underpin prices.
March robusta coffee settled up $10, or 0.7%, at $1,386 a tonne. The contract ended the year little changed.
March New York cocoa settled up $6, or 0.2%, to $2,603 a tonne. The contract posted an annual gain of 2.1% boosted partly by a decline in certified exchange stocks.
March London cocoa was little changed at 1,737 pounds per tonne. The contract posted an annual loss of around 4.5%, pressured partly by a weakening dollar.—Reuters
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