Raw sugar hits one-month peak.

Byline: S. Kamal Hayder Kazmi

Raw sugar futures on ICE climbed to a one-month high on Wednesday boosted by fund short covering while arabica coffee slipped to a two-month low. May raw sugar was up 0.11 cent, or 0.9 per cent, at 13.34 cents per lb by 1520 GMT after climbing to a one-month high of 13.35 cents. Fund short covering against the backdrop of recent gains in crude oil has helped to fuel the recent advance. Higher oil prices encourage increased use of cane in Brazil to make biofuel ethanol rather than sugar, and can curb sugar output. Sucden Financial senior trader Nick Penney said in a...