White Sugar Rises for Second Day on Indian Export Speculation.

White sugar rose for a second day in London on speculation that India will limit exports. Raw sugar declined in New York trading.

India, the world's second-biggest sugar producer, said Jan. 7 it may delay shipments in an attempt to curb food-price inflation, according to a Reuters report. The government said Jan. 3 it would issue permits for shipments of up to 500,000 metric tons.

"Right now there are uncertainties in India," said Fabienne Pointier, an analyst at Lausanne, Switzerland-based broker Kingsman SA. "Most traders were convinced that we would see 500,000 tons of general-licensed sugar exported, but then on Friday we saw some signs that might not happen."

Refined, or white, sugar for March delivery gained $5.50, or 0.7 percent, to $770.60 a ton at 1:15 p.m. London time on NYSE Liffe. Prices added as much as 2.1 percent after rising 2.3 percent, the most in two weeks, on Jan. 7.

Raw sugar for March delivery fell 0.29 cent, or 0.9 percent, to 31.24 cents a pound on ICE Futures U.S. in New York.

Indian food inflation advanced to 18.32 percent in the week ended Dec. 25, official figures showed on Jan. 6. Prime Minister Manmohan Singh's government is under pressure to curb rising costs including those of vegetables such as onions, a key ingredient in the nation's cuisine.

Robusta coffee for March delivery gained 0.7 percent to $2,037 a ton in London. Arabica coffee for March delivery climbed 0.4 percent to $2.3165 a pound in New York.

Cocoa for March delivery slipped 0.2 percent to $2,843 a ton in New York. In London, cocoa for March delivery fell 0.5 percent to 1,919 pounds ($2,977) a ton.

Cotton for March delivery rose 0.5 percent to $1.4125 a pound, the first gain in three sessions, in New York.

Source : sfgate.com