Raw sugar futures on ICE settled at a
three-month high in choppy dealings on Thursday, while coffee surged on
spillover support from gains in agriculture commodities. Cocoa futures also
moved higher. "The rise in soft commodities is primarily on the back of
higher agricultural markets," said Sudakshina Unnikrishnan, a soft
commodities analyst with Barclays Capital.
The Thomson Reuters-CRB index, a benchmark for global commodities, jumped 1.9 percent to a 2-1/2-month high at 304.85. Sugar's higher close followed an up and down session, with funds buying early. "The (raw sugar) market tried to go up this morning when we had the funds buying. Very fast we ran out of steam and then we just fell like a rock," said Alex Oliveira, Newedge USA analyst.
Oliveira noted that sugar turned negative as corn futures fell from their highs. Raw sugars later turned up again, to close at a three-month high on the coattails of the firm commodity complex. Benchmark October sugar futures on ICE gained 0.30 cent, or 1.3 percent, to close at 23.25 cents a lb, the highest settlement for the spot contract since April 13.
The sugar market was underpinned by the prospect that weak monsoon rains may reduce production in top consumer and No. 2 global producer India, dealers said. Rains in Australia have also slowed the flow of supplies from the world's third-largest raw sugar exporter. The sugar market got a boost from news on Wednesday that Copersucar, a leading sugar and ethanol trader in top producer Brazil, said rains forced 42 percent of its associate mills to stop crushing and it may turn to buying the sweetener.
White sugar futures on Liffe also soared in choppy dealings. The October contract jumped $11.60, or 1.9 percent, to end at $636.30 per tonne. Arabica coffee futures jumped on a combination of chart-based strength after the benchmark contract managed to close above its 100-day moving average at $1.7899 on Wednesday, and as the firm commodity complex provided support, dealers said.
Arabica coffee futures on ICE soared with September jumping 6.80 cents, or 3.7 percent, to settle at $1.8895 per lb. Robusta coffee futures on Liffe also rallied, with September settling up $81, or 3.8 percent, at $2,192 a tonne, the highest since May 31. The benchmark US cocoa futures contract climbed as it triggered buy stops above $2,220, then filled the technical gap between $2,250-$2,270, before consolidating slightly, dealers said. ICE September cocoa futures rose $26, or 1.2 percent, to settle at $2,230 a tonne. London September cocoa finished up 31 pounds, or 2.1 percent, at 1,532 pounds per tonne.
The Thomson Reuters-CRB index, a benchmark for global commodities, jumped 1.9 percent to a 2-1/2-month high at 304.85. Sugar's higher close followed an up and down session, with funds buying early. "The (raw sugar) market tried to go up this morning when we had the funds buying. Very fast we ran out of steam and then we just fell like a rock," said Alex Oliveira, Newedge USA analyst.
Oliveira noted that sugar turned negative as corn futures fell from their highs. Raw sugars later turned up again, to close at a three-month high on the coattails of the firm commodity complex. Benchmark October sugar futures on ICE gained 0.30 cent, or 1.3 percent, to close at 23.25 cents a lb, the highest settlement for the spot contract since April 13.
The sugar market was underpinned by the prospect that weak monsoon rains may reduce production in top consumer and No. 2 global producer India, dealers said. Rains in Australia have also slowed the flow of supplies from the world's third-largest raw sugar exporter. The sugar market got a boost from news on Wednesday that Copersucar, a leading sugar and ethanol trader in top producer Brazil, said rains forced 42 percent of its associate mills to stop crushing and it may turn to buying the sweetener.
White sugar futures on Liffe also soared in choppy dealings. The October contract jumped $11.60, or 1.9 percent, to end at $636.30 per tonne. Arabica coffee futures jumped on a combination of chart-based strength after the benchmark contract managed to close above its 100-day moving average at $1.7899 on Wednesday, and as the firm commodity complex provided support, dealers said.
Arabica coffee futures on ICE soared with September jumping 6.80 cents, or 3.7 percent, to settle at $1.8895 per lb. Robusta coffee futures on Liffe also rallied, with September settling up $81, or 3.8 percent, at $2,192 a tonne, the highest since May 31. The benchmark US cocoa futures contract climbed as it triggered buy stops above $2,220, then filled the technical gap between $2,250-$2,270, before consolidating slightly, dealers said. ICE September cocoa futures rose $26, or 1.2 percent, to settle at $2,230 a tonne. London September cocoa finished up 31 pounds, or 2.1 percent, at 1,532 pounds per tonne.
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