Raw sugar hits one-week high but excess supply caps gains.

Raw sugar futures hit a one-week high on Tuesday as funds covered their record net short position, though signs of excess nearby supply continued to cap gains. Arabica coffee drifted lower and cocoa steadied following its recent strong run. October raw sugar was up 0.11 cent, or 1 percent, at 11.33 cents per lb by 1059 GMT, having hit its highest since Sept. 16 at 11.34 cent per lb.

Sugar has been underpinned by a further rise in the already large speculative net short position and expectations the global market will swing into deficit in the 2019/20 season. However, dealers expect a...