Raw sugar rose to the highest price in almost two weeks on speculation that supplies will ease from Brazil, the world's biggest producer.

Wholesalers are building inventories before an anticipated increase in demand in India and the Middle East, said James Kirkup, the head of sugar broking at Fortis Bank Nederland in London. Sugar prices rose 3.8 percent yesterday on supply concerns.

Eoin Treacy's view Sugar prices have had one of the more dramatic declines in the soft commodity sectors this year but now appear to have entered a base building phase. A sustained move above $500 would complete the base and indicate demand has regained dominance beyond the short term.