March white sugar ended $9.00 higher at $759.00 a tonne, having earlier touched a record high of $767.00 a tonne. Market boosted by nearby supply tightness. March robusta coffee settled $18 lower at $1,327 per tonne, weighed partly a firmer dollar. Market remains stuck in a range.
Demand for sugar has been voracious, but stocks are low and the next major harvest in the main centre-south growing region of Brazil, the world's top producer, is not due until April. Sugar dealers said the market's stunning rally, which saw prices more than double last year, showed no signs of slowing.
"Sugar is playing by its own rules at the moment. Fundamentals do justify these prices," said Jake Weatherall, a soft commodities trader with Rabobank. "Supplies are tight, and there has been continued talk of tenders from around the world." The market has been supported by a large global supply shortfall in 2009/10 after disappointing crops in top producers Brazil and India.
The crunch should ease after the first quarter. Dealers said top consumer India, now harvesting, may be able to delay further purchases until later in the season but others such as Iran, Indonesia, Egypt or Pakistan may need to buy soon.