NEW YORK, Sept 21 (Reuters): Raw sugar futures jumped more than 3 per cent on Friday to gain 19.2 per cent for the week, the highest weekly price increase since 2008, as speculators rushed to buy following a breach of technical trade levels prompted by worries over Brazil's supplies.
October raw sugar settled up 0.73 cent, or 3.3 per cent, at 22.66 cents per lb, having hit the highest price in nearly seven months at 23.13 cents.
"Prices (are) now above all key technical indicators (and) speculators have plenty of room to push the market higher," said Stephen Geldart, associate director of broker and supply-chain services provider Czarnikow.
He noted most analysts think sugar will be under-supplied in the first quarter, and that this week's price action could open the door for a year-end rally towards 24 cents. Trader Wilmar cut its projection for Brazil's sugar production to a range between 38.8 million and 40.8 million metric tons on Thursday from its initial estimate of 42 million tonnes.
Brazil is facing its worst drought, according to government data. The excessive dryness worsened the outlook for this year's and next year's crops.
December white sugar rose 2.9 per cent to $584.90 per ton, having hit its highest since early July at $590.30.
COFFEE
December arabica coffee settled down 10.9 cents, or 4.2 per cent, at $2.5075 per lb, extending the market's retreat from a 13-year high on Monday.
Dealers said some showers over Brazil's coffee belt, and a forecast for more, was a major factor in the price fall. "If rains arrive into October we will see some of that weather-premium risk come out of the market," said a U.S.-based broker.
The GFS model predicts rains for south Minas Gerais in Brazil this month and early in October.
Brazil's 2024 coffee crop has come in 0.5 per cent below last year's levels and far below a May forecast, food-supply agency Conab said.
November robusta coffee fell 3.6 per cent at $5,059 a ton, having hit its highest in nearly 50 years on Monday.
COCOA
December New York cocoa settled down $92, or 1.2 per cent, to $7,658 a ton.
Cocoa has stabilised at prices well below peaks set in April as favourable weather has improved the outlook for the 2024/2025 crops in West Africa.
March London cocoa fell 0.5 per cent to 4,583 pounds per ton.
