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Sugar price hits record high

LONDON, August 3, 2009 (AFP) - The price of sugar reached a record high here on Monday, aided by a weaker dollar amid more positive signs of economic recovery and the commodity's weak supply situation, traders said.
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In London trade, white sugar for delivery in October reached 505.
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9 pounds a tonne -- the highest level since the commodity was first traded in this form in 1983.

In New York, unrefined sugar for October hit a three-year high of 19.

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43 US cents a pound.

"Amidst markedly improved sentiment regarding the US economic recovery in particular, which has given significant support to all commodity prices, we have also witnessed several sugar market-specific developments," said Barclays Capital analyst Nicholas Snowdon.

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He cited "the continuation in (supply) problems in the India sugar sector" and added: "What has given the added boost is the increasing uncertainty concerning the Brazilian production" in 2009 and 2010.




In economic data on Monday, it was announced that the US factory sector moved within striking distance of growth in July.

The Institute of Supply Management said its index of the manufacturing sector, also known as the purchasing managers index, rose to 48.

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