SOFTS-Raw sugar rises to near 6-year high on tight supplies

Updates prices

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LONDON, Dec 23 (Reuters)Raw sugar futures on ICE rose to the highest level in nearly six years on Friday, boosted by supply tightness, while coffee and cocoa prices also climbed.

SUGAR

* March raw sugar SBc1 rose 0.3% to 20.96 cents per lb by 1426 GMT after peaking at 21.18 cents – the highest level for the front month since February 2017.

* Dealers said supply tightness was expected to continue through the first quarter of next year and front-month March was trading at a premium to May SB-1=R of about 1.50 cents a lb, up from about 1.45 cents at the close on Thursday.

* Delays to harvests in Thailand, Australia and Central America have helped to tighten supplies, while rains have also meant some cane in Brazil will not be cut until next season.

* March white sugar LSUc1 rose 0.04% to $571.50 a tonne.

COFFEE

* March arabica coffee KCH3 rose 1.6% to $1.7155 per lb after rising to a one-week peak of $1.7265.

* Dealers said price charts were looking more bullish after the market’s recent improved performance while there was also some short covering ahead of the long holiday weekend.

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* A continued rise in exchange stocks, however, helped to keep a lid on prices.

* ICE certified coffee stocks stood at 788,275 bags, as of Dec. 22, the highest level in more than five months. There were also 268,631 bags pending grading.

* March robusta coffee LRCc2 rose 0.2% to $1,881 a tonne.

COCOA

* March London cocoa LCCc1 rose 0.6% to 2,063 pounds a tonne.

* Dealers said the recent run-up had been fuelled by fund short covering and a lack of origin selling ahead of the upcoming holidays.

* March New York cocoa CCc1 rose 1.4% to $2,643 a tonne.

(Reporting by Nigel Hunt; Editing by Louise Heavens and Alexander Smith)

((nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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