NEW YORK/LONDON, Dec. 25 (Reuters) – Raw sugar climbed to the highest level in 29 years, and white sugar futures bounced to a record peak on Thursday, in thin pre-Christmas dealings, stoked in part by fund buying and the softer dollar.

Coffee futures finished at a 4-week low while cocoa continued to consolidate and closed firm in quiet pre-holiday dealings.

Markets will be closed Friday for the Christmas holiday.

Raw sugar futures on ICE jumped with March closing up 0.58 cent, or 2.2 percent, at 27.08 cent, the highest settlement for the spot contract since February 1981 on a monthly continuation chart.

''I think they wanted to hit that target (of 27 cents in March) more than anything. Fundamentally, there's no reason to sell it,'' said Jack Scoville, analyst for brokers The Price Futures Group in Chicago.

''The funds keep pushing it up,'' said Alex Oliveira, senior sugar analyst for brokers Newedge USA in New York.

March whites ended an abbreviated pre-holiday session up $9.60, or 1.4 percent, at $694.00 per ton after touching $695.00, a record high for the benchmark front month. ''The specs are long and keeping it firm. I suspect we will hit $700 before the end of the year,'' one dealer said, adding thin pre-holiday conditions made it easier for investor longs to enhance the profitability of their positions.