SOFTS-Raw Sugar Hits Four-Year Peak on Talk of Indian Imports

(Reuters) – Raw sugar futures rose to a four-year high on Thursday, lifted by talk of imports by no. 2 producer India and a day after a surge in oil prices on a deal by OPEC to curb output.

March raws were up 0.22 cent, or 0.9 percent, at 24 cents per lb at 1146 GMT.

The contract touched a peak of 24.10 cents in early trading, the highest level for the second month since July 2012.

“We are entering a bullish scenario with Thailand and India producing less,” said Claudiu Covrig, an analyst at S&P Global.

“The difference between now and one year ago is that funds have kept increasing their long positions … It looks like funds are leading the market.”

The head of the Indian Mills Sugar Association on Wednesday said the country’s sugar output in the 2016/17 marketing year is likely to drop below consumption levels for the first time in seven years.

India is likely to import 1 million tonnes of sugar in 2016/17 as its consumption could outpace production, sugar trader Benoit Boisleux at Louis Dreyfus Commodities said on Wednesday.

December whites were up $4.1, or 0.7 percent, to $616.10 per tonne after peaking at $619, the highest for the front month since August 2012.

November robusta coffee was up $7, or 0.3 percent, to $2,003 per tonne.

Coffee supply has dipped in Asia, with top producer Vietnam’s September export volumes hitting a seven-month low as stocks dwindle before a new harvest.

December arabica futures were up 1.25 cents, or 0.8 percent, to $1.5435 per lb.

New York December cocoa was down $16, or 0.6 percent, to $2,809 per tonne.

Top producer Ivory Coast increased the minimum price farmers must get for a kg of cocoa beans for the 2016-17 crop by 10 percent, against the recommendation of the country’s cocoa marketing board to leave prices unchanged.

March London cocoa was down 18 pounds, or 0.8 percent, to 2,190 pounds per tonne.