LONDON: Raw sugar prices on ICE headed back near last week's 3-1/2 year highs on Thursday as funds remain keen on commodities, especially those with near term supply tightness like sugar. Arabica coffee retreated after the prior session's 3% surge. March raw sugar rose 2% to 16.15 cents per lb at 1257 GMT, nearing last week's high of 16.33 cents.
"The momentum has been maintained and this may encourage further fund buying," said a dealer. He added while more selling above 16 cents will be found, it will likely be in the later month contracts, with March set to test last week's 3-1/2 year peak. Suedzucker, Europe's largest sugar producer, confirmed it has cut its forecast of full-year profits because of the coronavirus crisis and a tough sugar market.
March white sugar rose 1.6% to $453.30 a tonne. March arabica coffee fell 0.8% to $1.2620 per lb, having settled up 3.2% on Wednesday. March robusta coffee fell 0.7% to $1,323 a tonne. There was little trading activity in top robusta producer Vietnam on Thursday due to tepid demand and shortage of shipping containers since last month. March New York cocoa fell 1% to $2,431 a tonne. March London cocoa ??fell 0.7% to 1,637 pounds per tonne.
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