Raw sugar futures surged to their highest price in almost 29 years on light investment fund buying spurred by tight supplies, analysts said. The benchmark March raw sugar contract jumped to a new lifetime peak at 27.30 cents per lb, its loftiest level since February 1981, and was trading at 27.20 cents at 7:37 am EST (1237 GMT). The market reopened for business at 7:30 am following the Christmas break.
March raw sugar rose 0.17 cent to 27.25 cents per lb. Ranging from 27.10 to 27.32 cents, a new contract top and the loftiest level for sugar's spot contract since February 1981. Volume in March contract a meager 2,129 lots. Sugar relies on investment fund buying to scale new peak in post-Christmas rally, but dealings light given London white sugar market still closed for Boxing Day break - dealers. Catalyst for market surge has been excessive rains in top producer Brazil which reduced output, as well as hefty imports by No 1 consumer India after a poor monsoon hurt its cane crop.