Raw sugar futures surged to close up more than 5 percent on Wednesday, while arabica coffee saw its biggest one-day gain in 4-1/2 months as funds and investors covered their shorts as the world stock markets rose. US cocoa also saw short-covering gains and closed up at a three-week high.
Key October raw sugar futures soared 1.45 cents, or 5.2 percent, to end at 29.49 cents a lb. Market up on stronger outside markets, some spread business, buying into stops and bullish fundamentals-dealers. Newedge USA sugar analyst Alex Oliveira said sugar should test 30 cents before the end of the week. December arabica coffee futures vaulted 11.80 cents, or 4.6 percent, to finish at $2.6680 per lb.
December soared well above the 200-day moving average, after closing Tuesday above this key level around $2.5220, as heavy short-covering by funds and investors lifted the market, said traders. Key December settled up $50, or 1.7 percent, to close at $3,039 a tonne, the strongest close since July 27.
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