Raw sugar prices rose on Monday in New York, reaching a three-week high as the market recovered from last weeks pressure following the delivery of 1.5 million tons for the settlement of October futures contracts.

Alvean and Cofco were among the main recipients of the October contract deliveries. Both companies are owned by groups operating sugar mills in Brazil, the worlds largest sugar producer a development traders interpreted as a sign that prices may be nearing a new bottom.

Although prices have fallen by about 13% since the start of the year due to expectations of abundant global supply, the market has begun to show signs of relative stabilization as the October contract winds down.

Bruno Lima, head of agricultural commodities at StoneX, told Bloomberg that the market is maintaining its recovery momentum following the end of the October contract, adding that short-term fundamentals havent changed much.

As of 17:01 GMT, raw sugar futures for March delivery rose by 1.94% to 16.79 cents per pound.