Rumours that Pakistan had purchased all 200,000 tonnes of sugar it tendered for, combined with a weaker dollar and bullish comments from Goldman Sachs, fuelled a rebound of nearly 6% in New York prices.

Raw sugar, which slumped to its lowest for more than a year on Friday, recovered to 14.55 cents a pound, for July delivery, in early deals in New York.

In London, white sugar for August leapt by a little under 5% to $458.30 a tonne.

The improvements reflected reports that Pakistan had, after a tender last week, bought all the sugar it tendered for, unlike in some previous bids.

Furthermore, it had bought from a renowned refiner - Dubai's al Khaleej Sugar, the market leader - rather than the little-known groups it favoured earlier this year, with mixed results.

Full complement 

"We hear that [Pakistan] have now purchased about 200,000 tonnes of white sugar at around the low $550s [a tonne] from al Khaleej Sugar," David Sadler at Sucden Financial Sugar said.

"In the past they have bought 25,000 tonnes here and there, and from people who are not members of the Sugar Association."

Pakistan's preference, while sugar markets were booming, for unorthodox refiners offering sharply discounted prices raised questions among investors about the country's real commitment to imports.

Pakistan last month cancelled a 50,000-tonne white sugar contract with Sadan General Trading after the delivery allegedly failed to meet deadlines.

'Demand should materialise'

However, prices also received help from a plunging dollar, whose decline made assets denominated in it more affordable to buyers in other currencies.

The dollar stood 1.4% lower against a basket of currencies, as of 11:00 GMT (12:00 UK time), after the eurozone sovereign debt support package revived Europe's single currency and reduced fears of broad economic problems which increase the appeal of the greenback.

Furthermore, Goldman Sachs forecast prices averaging 15 cents a pound for the next six months on hopes of a revival in orders from importing countries.

"The continuing drought in China, the world's second largest consumer, and the recent… decision to increase US import quotas suggest that demand should eventually materialise," the investment bank said.

"Prices could therefore find some support in the coming months as buyers return to the market."