January 22, 2015
Reuters
By David Brough
LONDON, Jan 21 (Reuters) - Raw sugar futures edged up to a seven-week peak on Wednesday on short covering and a firmer real currency, while arabica coffee also rose, although forecasts for rains in Brazil limited gains.
Cocoa edged lower, with traders focused on the Asian fourth-quarter cocoa grind, a measure of demand, due later this week.
Raw sugar futures rose in the previous session after the Brazilian government restored a fuel tax on gasoline and diesel that is likely to encourage Brazil to produce more ethanol biofuel from sugar.
Raw sugar futures are also in the middle of a technical move higher, traders and analysts said.
"There is a lot of short covering which is providing fuel for this rally," said Tracey Allen, commodities analyst with Rabobank.
Reference: http://af.reuters.com/article/ghanaNews/idAFL6N0V02P020150121