Liffe front-month, December white sugar ended $27.80 higher at $677.60 per tonne on Friday after earlier setting a 8-month high for the front month of $686.40 a tonne. Market buoyed by fund buying and tight supplies. Liffe second-month March cocoa ended 30 pounds higher at 1,892 pounds a tonne.
Traders awaited updates on the extent of the threat posed to Ivory Coast production by black pod disease while uncertainty about elections in the world's top producer also added support. Liffe second-month January robusta coffee settled $34 higher at $1,687 per tonne, swept up in the broad-based advance in commodity markets.
"It's fund and spec buying amid concern over tight supplies because of delays in shipments out of Brazil," a London-based sugar futures dealer said. The line of ships waiting to load sugar at Brazilian ports on October 6 remained steady with the same number the week prior at 108, shipping agent Williams said. Dealers also voiced concerns over adverse weather in key producers such as Mexico, Argentina and Australia.
The International Sugar Organisation said it expected white sugar supplies to remain tight in the coming 10 months. "Export availability is practically equal to import demand and in the case of any unforeseen reductions in production... the market may face a physical supply deficit in the white sugar segment," the ISO said in a report published on Friday.
"We've got support around here and it could work its way back towards the 13-year high," the broker said. In cocoa dealers eyed any updates on the extent that crop disease black pod is damaging Ivory Coast beans. "There's a lot of activity in origin as people's concerns grow about black pod," a London-based broker said. Uncertainty over elections in top producer Ivory Coast added support. Dealers noted interest on later dated contracts in London with some activity on March/May.
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