- * Raw sugar hits 6-month highs; coffee near 13-year peak
- * Wheat rallies a second day as Russian export ban stays
- * Copper closes off 4-month highs; oil off peaks too
- * Coming Up: U.S. jobs data for August on Friday
(Updates prices, markets activity to close of U.S. session; changes dateline to New York, previously SINGAPORE) By Barani Krishnan NEW YORK, Sept 2 (Reuters) - Raw sugar surged to six-month highs on Thursday and coffee and wheat rallied too as supply concerns pushed up prices of most agricultural commodities ahead of key U.S. jobs data. Copper hit four-month highs for a second day in a row and oil rose on Hurricane Earl's possible impact on East Coast refineries. Both markets settled off their highs despite strong U.S. pending home sales that should have been positive for industrial commodities. Investors had been encouraged lately by U.S. manufacturing and other macroeconomic data suggesting the country may not be headed for a douple-dip recession. Attention is now on August jobs numbers, due on Friday, for proof of this. "What we see in the home sales data and factory orders is all evidence that we are not going to implode and won't go into a double dip, for now," said Howard Simons, strategist at Bianco Research in Chicago. "We know we are weak and we are not coming out of this in a 'V' shaped recovery. At best we will have an 'L'." The 19-commodity Reuters-Jefferies CRB index settled up almost 1 percent at a three-week high as agricultural, metals and energy markets rose broadly for a second straight session. (Graphic: http://link.reuters.com/kew48n) Sugar futures hit their highest levels since March and arabica coffee hovered near a 13-year high, both in New York. U.S. raw sugar futures for October settled up 0.32 cent, or 1.6 percent, at 20.81 cents a lb after touching a six-month high at 20.94 cents. Analysts said the sugar market looks to be establishing itself at above 20 cents a lb, after breaking resistance at 20.37 cents on Wednesday and scaling 20.79 peak Thursday. Futures prices are supported by expectations that the global sugar market is likely to be in equilibrium rather than deficit in 2010/11, dealers said. "With new recent highs being posted in the futures markets, it may not be too long before the main fund players who participated last year and early this year return to the fray," said Nick Penney in a report for Sucden Financial Sugar "The consensus at the moment indicates that supplies at the end of the year and into early 2011 are likely to be tighter than expected as a result of inclement weather in various parts of the world." Arabica coffee were within sight of the near 13-year high of $1.8865 a lb touched last week, supported by diminishing stockpiles at coffee exchanges. Although a surplus of arabica beans is expected in 2010/11, dealers said this would not necessarily boost exchange stocks as differentials on the physical market for high quality arabica beans could be more attractive to sellers. Arabica coffee for December settled up 2.5 cents, or 1.4 percent, at $1.8485 a lb. U.S. wheat rallied after Russia said it would keep its grain export ban in place until after the 2011 harvest, boosting long-term prospects for U.S. supplies on the world market. "The Russian drought certainly changed the landscape of the wheat situation and the global picture for the time being," said Mark Schultz, chief market analyst for Northstar Commodity Investment Co. "They are out of the export market." U.S. wheat futures for December settled up 5 cents at $7.13-1/2 a bushel in Chicago. The September wheat contract, which expires on Sept. 14, finished up 5-1/4 cents at $6.80-3/4 a bushel. (Reporting by Barani Krishnan; Editing by Marguerita Choy)
