LONDON: Raw sugar futures climbed to a 3-1/2 year high on Wednesday, boosted by short-term supply tightness, a weaker dollar and broad-based strength in agricultural commodity markets.

SUGAR

March raw sugar was up 0.15 cents, or 0.9%, at 16.27 cents per lb by 1228 GMT after climbing to a peak of 16.32 cents, its highest since May 2017.

Dealers said supplies appeared tight, at least until April, when Brazilian production may start to pick up again.

The run-up in prices should, however, lead to a pick-up in exports from India where production has been well above year-earlier levels.

Funds appear to have a strong appetite for agricultural commodities at the moment, with corn prices at their highest since 2014. Corn and sugarcane are both used to produce biofuel ethanol.

March white sugar was up $4.00, or 0.9%, at $441.30 a tonne.

COCOA

March New York cocoa was up $13, or 0.5%, at $2,527 a tonne.

Dealers said the market was finding some support after recent weakness, but was failing to keep pace with many other agricultural markets amid concern that lockdowns across Europe could further curb demand.

The market was awaiting fourth-quarter cocoa grinds, an indicator of demand, with North American data due to be released on Jan. 14 and European data provisionally on Jan. 20.

March London cocoa rose 7 pounds, or 0.4%, to 1,699 pounds a tonne.

COFFEE

March arabica coffee fell 0.8 cents, or 0.6%, to $1.2430 per lb.

Dealers said the market was weighed partly by rising certified exchange stocks.

March robusta coffee was down $3, or 0.2%, at $1,362 a tonne.