White sugar futures tapped a record high, supported by news of Pakistani and Iraqi interest, while raw sugar climbed within sight of Tuesday's 29-year peak.

Chart-based and industry buying nudged coffee and US cocoa futures higher, despite a strengthening US dollar.

London cocoa finished quietly lower.

Volume was light all around ahead of the New Year's Day holiday on Friday.

Jack Scoville, an analyst for brokers the Price Futures Group in Chicago, said sugar came back strongly after an early attempt to push it lower petered out and that market fundamentals continued to support the sweetener.

'The overall fundamental strength of the market reasserted itself,' he said. 'We still have a little bit of a tight situation in the market.'

India, the world's top consumer of sugar, will still be a major buyer and demand is anticipated to pick up going into the first quarter of 2010.

ICE March raw sugar futures climbed 0.19 cent to finish at 26.96 cents a lb. On Tuesday, the contract tapped a 29-year high at 27.49 cents.

London (Liffe) March white sugar eased back from the all-time high of $708.00 per tonne, basis front month, to closed up $4.80 at $705.00.

The offtake was underscored by news that Pakistan plans to issue a tender on Jan. 1 to import 150,000 tonnes of white sugar, and Iraqi approval of a purchase of 250,000 tonnes of refined sugar.

Other potential buyers are Indonesia and even the US, which may need to import an additional 1.0 million tonnes of sugar by the spring of next year.

Most analysts believe raw sugar prices could rally to a fresh 29-year top over 30 cents in the coming weeks.

In coffee, dealers talked of industry and technical buying, and said the price outlook into 2010 appeared constructive. The markets ignored the strong US dollar, which typically adds pressure.

Producers were sidelined from selling at the current soft prices, risking a supply squeeze.

ICE March arabica coffee futures inched up 0.30 cent to close at $1.3665 per lb, while Liffe March robustas ended up $17 at $1,318 per tonne.

'Now it looks like we're trying to consolidate, which doesn't surprise me coming into year end,' said Tom Mikulski, senior market strategists at MF Global Ltd's Lind-Waldock division in Chicago.

Arabica futures were technically week in the short-term although the long-term trend still pointed higher, Mikulski said.

US cocoa futures inched up while London cocoa fell.

'There's indecision, the market doesn't know what it wants to do right now,'  Mikulski said.

Dealers said cocoa prices were likely to stay well supported into 2010 as the main crop tailed off sharply in leading West African producers. Traders will watch the progress of the dry 'harmattan' wind in West Africa in the coming weeks.

ICE March cocoa rose $10 to settle at $3,247 per tonne.

'If we stay below that resistance, it's a good sign we're probably going to start probing the lows again,' Mikulski  said, referring to the $3,270 level.

London May cocoa finished down 9 pounds to finish at 2,245 pounds per tonne. – Reuters