NEW YORK/LONDON: Raw sugar and arabica coffee on ICE Futures US both rallied the most since late June on Thursday, as cocoa also jumped.
SUGAR
October raw sugar hit a session high of 14.18 cents per lb and settled up 0.65 cent, or 4.82 percent, at 14.14 cents, the biggest one-day rally since June 29.
Prices were supported by early gains in the Brazilian real, sparked by a corruption conviction of a former president.
The real's gains strengthen sugar and coffee prices as they reduce exporters' incentive to sell the dollar-traded commodities.
A more supportive technical structure helped prices break through the 10-day moving average.
Low prices have spurred demand, said Michael McDougall, director of commodities for Societe Generale in New York, citing the recovery of the white sugar premium from around $80 to $85.
August white sugar settled up $11.80, or 2.9 percent, to $418.20 a tonne ahead of a contract expiry on Friday amid expectations of tighter deliverable supplies.
One dealer said a delivery of about 350,000 tonnes was likely.
COFFEE
September arabica coffee settled up 3.6 cent, or 2.82 percent, at $1.312 per lb, after peaking at $1.3185. That marked the biggest one-day gain since June 23.
Fluctuation in Brazilian currency also impacted prices, lifting them above key resistance levels.
"The Brazilian harvest is coming up short of expectations," said Shawn Hackett, president of Hackett Financial Advisors in Boca Radon, Fl. He also noted weather concerns in Argentina as supportive.
September robusta coffee settled up $48, or 2.29 percent, at $2,145 per tonne.
In top producer Vietnam, grade 2 robusta was offered at a $10 discount to the September futures contract, narrowing slightly from a $20 discount last week, but few deals were struck as good beans were scarce.
COCOA
September New York cocoa settled up $51, or 2.80 percent, at $1,872 per tonne. Dealers cited a combination of short-covering and industry buying.
"We were somewhat oversold, so we were always vulnerable to a little bit of short covering," one dealer said. "And you're seeing the demand side of things looking a little bit more robust, which is probably supportive."
Global demand figures, released as part of Barry Callebaut earnings on Thursday, showed appetites for chocolate may finally be increasing.
September London cocoa settled up 38 pounds, or 2.61 percent, at 1,492 pounds per tonne, ahead of a contract expiry on Friday.
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