Raw sugar hovers within sight of 29-year high

Raw sugar futures on ICE hovered within sight of a 29-year high on Wednesday, underpinned by tight supplies, while cocoa and coffee were little changed in light volumes. The raw sugar market appeared to be in a holding pattern with persistent resistance at 30 cents a lb and a lack of physical buying at high prices dampening demand, brokers said. Benchmark ICE front-month raw sugar futures hit a 29-year peak of 30.40 cents a lb on Monday. ICE March raw sugar futures were down 0.19 cent or 0.65 per cent to 29.21 cents a lb at 1151 GMT, while Liffe March white sugar was up $1.80 or 0.25 per cent to $736.30 per tonne in moderate volume of 3,792 lots. "We are running out of oxygen above 30 cents," said James Kirkup, director and head of sugar brokerage at Fortis Bank Nederland in London. Raw sugar futures surged to 29-year highs after disappointing crops in leading producers Brazil and India. Sugar prices will reach historic highs by the end of March 2010 as a global supply shortage tightens its grip on the market and increases investor fervour for the sweetener, a Reuters poll showed.