LONDON, Jan 23: White sugar futures on LIFFE rose to their highest for nearly 10 years on Monday, boosted by speculative buying and general short covering after Friday’s sharp advance in New York, traders said.

March climbed to $415.30 a ton, up $14.20 or more than 3 per cent from Friday and the highest for the front month since April 1996.

It’s some short covering and some spec buying. After the big breakout on Friday, the market is very strong, one trader commented.

Investment fund flows into commodities, including sugar, are expected to increase sharply this year in search of higher returns, Paris-based broker Jonathan Kingsman said on Monday.

Middle East and North African sugar refining capacity is expected to increase in the medium to long term to meet rising demand, a leading refinery executive said on Monday.

Thai Cane and Sugar Corp (TCSC) will tender to sell 25,333 tons of raw sugar on Tuesday for export later this year, a company official told Reuters.—Reuters