Raw sugar futures rallied to within a whisker of a fresh 30-year high on Thursday, as tight supplies and looming cash business from Europe and Russia encouraged market bulls. ICE cocoa settled at the highest level in a year for the fourth straight day on supply concerns following an export ban in top grower Ivory Coast. Coffee futures reversed and settled quietly lower.
The European Union's executive said it would approve extra sugar imports and the sale of out-of-quota sugar on the EU market to address an expected supply shortage and to curb rising prices. The news sealed the biggest two-day rally since October 8, totalling 7.5 percent.
The March raw sugar contract on ICE surged 1.05 cents or 3.2 percent to close at 34.18 cents per lb, the highest settlement since December 28, 2010, the day before it reached a 30-year high of 34.77 cents. Benchmark ICE March cocoa futures finished up $6 at $3,358 per tonne, after hitting a session high at $3,420, fuelled by news that sales of cocoa beans and products from Ivory Coast had virtually stopped, while smuggling picked up. ICE March arabicas eased 0.55 cent to settle at $2.3695 per lb.