Arabica coffee prices closed at a 34-year high but pared gains after jumping above $3 per lb on Wednesday, on a high-quality bean shortage, bullish charts and a broad commodities rally fuelled by a weaker dollar. Sugar surged in its biggest one-day percentage gain in more than three months after falling 15 percent in the past two weeks on improving investor sentiment.
Cocoa settled mixed as dealers awaited news of top producer Ivory Coast's resumption of exports and the condition of its mid crop. ICE arabica coffee futures prices broke above the psychological $3.00 a lb, maintaining their upward momentum that has seen a 17 percent lift in the past two weeks.
Benchmark July arabicas on ICE climbed 5.20 cents or 1.8 percent to finish at $2.9945 per lb, the highest settlement for the second position since 1977, after surging to $3.0250 a lb earlier in the session. July robusta coffee gained $30, or 1.2 percent, to settle at $2,482 a tonne.
The ICE May raw sugar contract jumped 0.93 cent to end at 25.20 cents per lb, while benchmark July surged 0.91 cent, or 4 percent, to finish at 23.53 cents. This was the second position's biggest daily percentage gain since January 1. ICE July cocoa futures rose $39 to finish at $3,106 a tonne.