Sugar prices hit record peak

KARACHI: White sugar futures tapped a record high, supported by news of Pakistani and Iraqi interest, while raw sugar climbed within sight of Tuesday's 29-year peak. According to foreign news agency, analysts said sugar came back strongly after an early attempt to push it lower petered out and that market fundamentals continued to support the sweetener. India, the world's top consumer of sugar, will still be a major buyer and demand is anticipated to pick up going into the first quarter of 2010. ICE March raw sugar futures climbed 0.19 cent to finish at 26.96 cents a lb. On Tuesday, the contract tapped a 29-year high at 27.49 cents. The off take was underscored by news that Pakistan plans to issue a tender on Jan. 1 to import 150,000 tonnes of white sugar, and Iraqi approval of a purchase of 250,000 tonnes of refined sugar. Other potential buyers are Indonesia and even the United States, which may need to import an additional 1.0 million tonnes of sugar by the spring of next year. Most analysts believe raw sugar prices could rally to a fresh 29-year top over 30 cents in the coming weeks.