Raw sugar prices hit 1-week high

NEW YORK/LONDON (Reuters): Raw sugar prices rose to a one-week high on Thursday.

July raw sugar closed up 0.2 cent, or 1.41%, at 14.34 cents per lb and touched a one-week high of 14.45 cents per lb in a flurry of buying after the settlement.

The buying came as expectations of the return of unfavourable weather this weekend in Brazil, the world’s top grower, spooked short sellers.

“There is more talk about bad weather in Brazil and growing concern that frost could return,” said James Liddiard of Agrilion consultancy in New York.

Speculators hold a bearish stance in the commodity.

Physical buyers remained largely sidelined, dealers said.

Funds had begun to roll forward positions out of July into October on Wednesday, adding significantly to volume, traders said.

August white sugar settled up $2.10, or 0.50%, at $420.30 per ton.