Sugar Hits One-Month High as Investors Unwind Short Positions

Raw sugar futures rose to the highest in more than a month as investors trim bearish bets on expectations that mills at top supplier Brazil will focus on producing sugar-cane ethanol instead of the sweetener.

The most-active contract in New York climbed as much as 1.7% on Monday to above 15 cents a pound, rising for a second-straight session. While the Middle East war is seen as increasing demand for the biofuel, declining ethanol prices in Brazil are also limiting mills’ appetite to shift even more cane to make the product.