ICE raw sugar futures rallied by around 6 percent on Tuesday, as traders focused on easing worries over euro zone debt and on the potential for disruption to Thai exports from political unrest. London August white sugar was up $12.50 or 2.7 percent at $481.00 per tonne. Liffe July robusta coffee was up $19 or 1.4 percent to $1,371 per tonne.
July cocoa on Liffe was up 30 pounds or 1.4 percent at 2,264 pounds a tonne. Cocoa and coffee gained ground as financial markets showed signs of optimism following progress on the eurozone debt rescue package and crude oil prices rose.
White sugar futures are supported by tight supplies, with traders monitoring the impact of political unrest on shipments from Thailand, the world's number 2 sugar exporter. Around 3,000 tonnes of Thai white sugar shipments have been delayed because of anti-government protests near Bangkok's main port, traders and surveyors said on Tuesday.
Benchmark raw sugar futures have pulled away from a one-year trough of 13.00 cents a lb touched on May 7. ICE July raw sugar soared more than 6.5 percent to a peak of 14.79 cents a lb, before losing some ground to stand at 14.65 cents a lb, up 0.76 cent or 5.5 percent, at 1544 GMT. Raw sugar futures had dropped since February on expectations of a sharp increase in supply in 2010/11 from top producers Brazil and India in response to a previous rally in prices.
ICE coffee and cocoa prices edged higher, in line with the stronger crude oil price, which dealers said has been a driver of soft commodity markets. ICE July arabica coffee was up 1.95 cents or 1.5 percent at $1.3450 per lb. Dealers said cocoa futures prices remain vulnerable to downside moves, particularly in London, where a recent rally to a 32-year high earlier this month was partly driven by currency weakness before the British general election on May 6. ICE July cocoa was up $30 or 1.1 percent at $2,844 a tonne.
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