Sugar and coffee futures vaulted higher on Thursday on firmer US stocks but cocoa was mixed as the softs complex recovered after the US credit downgrade battering earlier in the week. The softs complex was in consolidation mode while waiting for fresh macro economic news to provide jittery investors direction on its next move.
Firmer US stocks pulled world shares higher as strong US jobs data took some of the attention away from the debt crisis gripping the eurozone. The key October raw sugar contract increased 0.46 cent to settle at 28.08 cents per lb. In late trade, raw sugar futures climbed sharply ahead of the latest crop estimate from leading Brazil sugar industry group Unica. The market then pared its gains after the numbers were handed out.
ICE Futures US December cocoa contract rose $15 to end at $2,886 a tonne. The second position cocoa market fell to a seven-month low after the International Cocoa Organisation (ICCO) significantly upped its forecast for a global cocoa surplus. Arabica coffee futures also saw heavy dealings due to hefty September/December position rolling ahead of September's first notice day August 23. The December arabica coffee contract gained 5.70 cents to end at $2.4405 a lb.