In a large mixing bowl, combine warm water with sugar to activate the yeast. Stir gently and let sit for about 5 minutes until foamy.

Once frothy, add bread flour, salt, and olive oil. Mix until a soft dough forms.

Knead the dough on a floured surface for 8-10 minutes until smooth and elastic.

Place dough in an oiled bowl, cover, and let it rise for 1 hour until doubled in size.

While the dough rises, prepare the pesto. Blend basil, garlic, pine nuts, Parmesan, and a pinch of salt in a food processor. Gradually add olive oil until smooth.

Punch down the risen dough and roll it out into a 12x16 inch rectangle. Spread pesto over it, leaving a 1-inch border.

Roll the dough tightly from one long edge and secure the seam.

Let the rolled dough rise covered for 45 minutes. Preheat the oven to 375°F during the last 15 minutes.

Score the top of the dough, place in the oven, and bake for 30-35 minutes until golden.

Allow the bread to cool completely on a wire rack before slicing.