Raw sugar futures hovered near a 28-year high and white sugar futures hit another record peak on Tuesday driven by expectations of strong demand from top consumer India, dealers said. October white sugar closed up $2.60 at $560.00 a tonne on Tuesday, having earlier touched a record peak of $566.50 a tonne.
The market is supported by expectations of strong demand from top consumer India and tight global supplies. December cocoa settled 35 pounds lower at 1,817 pounds a tonne, with losses capped by a weak pound, which makes sterling-denominated futures better value in terms of other currencies. September robusta coffee settled down $11 at $1,452 per tonne in low trade volumes in a rangebound market.
London cocoa futures fell, with losses limited due to support from a weak pound that makes sterling-denominated futures better value in terms of other currencies. Coffee futures were little changed in moderate volumes. Raw sugar values have surged more than 80 percent this year, and hit a 28-year top of 22.44 cents a lb on Monday.
"I think what we could see over the next few days is some consolidation, but that would certainly only be a base before the next move up," a Czarnikow trader said. "The market is still holding very well and there's still quite firm buying to come in," he said.
"I find it very hard to see anything that's going to stop this at the moment." Jonathan Kingsman, managing director of consultancy Kingsman said raw sugar could retrace lower to 20 cents a lb, which was likely to trigger flows of Brazilian raws to net importer India. Such renewed Indian demand could then support the market, which could eventually exceed 25 cents a lb, Kingsman told Reuters.
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