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

March raw sugar was up 0.17 cents, or 1.05%, at 16.29 cents per lb by 1504 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 $5.70, or 1.3%, at $443 a tonne.

March arabica coffee fell 1.9 cents, or 1.5%, to $1.2320 per lb.

Dealers said the market was weighed by rising certified exchange stocks, renewed weakness in Brazil’s real currency and bearish signals on price charts.

“The (technical) indicators are pointing to a further decline in prices in the near term,” Sucden Financial said in a note on technicals.

March robusta coffee was down $1, or 0.1%, at $1,364 a tonne.

March New York cocoa was down $6, or 0.2%, at $2,508 a tonne.

Dealers said the market 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 fell 2 pounds, or 0.1%, to 1,690 pounds a tonne.—Reuters