LONDON, June 8 (Reuters) - Raw sugar futures on ICE climbed to the highest level in almost three months on Monday, boosted by fund buying, while arabica coffee prices fell slightly.
* July raw sugar was up 0.14 cent, or 1.2%, at 12.16 cents per lb by 1208 GMT after peaking at 12.17 cents, the highest level for the front month since March 11.
* Dealers said the recent recovery in other markets including global equities and crude oil have given a significant boost to sugar prices.
* “It (the rally) is entirely based on a rush to buy ‘risk on’ assets and sugar is one of those,” analyst Robin Shaw of Marex Spectron said in a note.
* Shaw said market fundamentals were less supportive with current prices meaning it is more attractive for mills in Centre-South Brazil to use cane to make sugar rather than ethanol, which could lead to a considerable global surplus.
* “And that surplus is probably growing with lower sugar consumption worldwide,” he added.
* August white sugar rose $3.50, or 0.9%, to $396.40 a tonne.
* More than 70 ships are lined up at Brazil’s port of Santos to load sugar for export in a queue that may take a month to clear after buyers worldwide scrambled to get ahead of possible disruption caused by the ravages of the coronavirus pandemic.
* July arabica coffee fell 0.3 cents, or 0.3%, to 98.60 cents per lb, weighed by the prospect of a huge crop in Brazil this year and weakening global consumption.
* Dealers noted speculators had switched to a net short in the week to June 2.
* July robusta coffee was down $5, or 0.4%, at $1,228 a tonne.
* July New York cocoa was up $1, or 0.04%, at $2,399 a tonne.
* July London cocoa fell 11 pounds, or 0.6%, to 1,856 pounds a tonne. (Reporting by Nigel Hunt; Editing by Steve Orlofsky)