White sugar advanced in London after oil gains increased demand for alternative fuels like ethanol.

White sugar for August delivery increased by 1.6 percent or 5.80 percent to $361.20 a ton on the Liffe exchange.

Sugar has increased by 14 percent this year on concerns that growers will divert more cane to ethanol.

Crude oil increased in New York after export terminals were shut in Mexico and demand for fuel in China continued increasing.

The U.S. Department of Agriculture forecasted sugar imports to fall by 30 percent to 170,000 tons.

Peru's cane output was forecasted to reach 995,000 metric tons on anticipation of increased acreage and good weather conditions.

Mexico China