Raw sugar futures reversed early losses to close up 4 percent on Wednesday, as a wave of system buying lifted the market closer to last week's 30-year peak simultaneously with the rebound in the commodity complex.
ICE March raw sugar surged 1.2 cents or by 3.9 percent to settle at 32.20 cents per lb, remaining rangebound despite covering a wide 1.96-cent low-high distance. The surge brought the market closer to the 30-year high reached on December 29 at 34.77 cents a lb. ICE March cocoa fell $80 or 2.7 percent to finish at $2,852 per tonne. The spot contract has fallen 6 percent in the first two trading days of 2011, the biggest back-to-back fall since June 2010.
ICE arabica coffee followed the commodity complex lower earlier, with pressure seen from the strong US dollar, as a rising dollar makes commodities priced in dollars more expensive for holders of other currencies.
ICE March arabicas fell 1.95 cents at $2.33 per lb.