ICE raw sugar futures rose to a nine-month high on Thursday, boosted by fund short covering and tightening supplies, while arabica coffee climbed to a more than one-year peak.
March raw sugar was up 0.03 cents, or 0.2%, at 13.09 cents per lb at 1527 GMT after rising to a peak of 13.14 cents, the highest for the front month since Feb. 26.
Dealers said funds were covering a net short position against the backdrop of tightening supplies but producer selling looked set to continue to slow the advance.
A global sugar deficit is widely forecast for the current 2019/20 season and there are some preliminary indications there could also be a deficit in 2020/21.
"We don't see anything immediate to prompt a major rally...As producer selling continues apace, further advances will be slow and ponderous," Sucden Financial senior trader Nick Penney said.
March white sugar rose $1.30, or 0.4%, to $347.90 a tonne.
March arabica coffee rose 2.65 cents, or 2.2%, to $1.2390 per lb after rising to a peak of $1.2530, its highest in more than one year. Dealers said the recent decline in certified exchange stocks had helped to support prices with supplies of washed arabica coffee tightening.
March robusta coffee rose $22, or 1.6%, to $1,392 per tonne. Dealers said there had been a slowdown in farmer selling following the recent retreat in robusta prices from a 3-1/2 month high of $1,447 a tonne set on Nov. 26.
"They (farmers) are refraining from selling beans as current prices are just slightly higher than the production cost," one trader in top robusta producer Vietnam said. March New York cocoa was up $34, or 1.3%, at $2,581 a tonne with the market regaining some ground after its recent slide. March London cocoa rose a more modest 3 pounds, or 0.2%, to 1,845 pounds a tonne, with gains capped by a stronger pound.
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