Raw sugar futures soared than 6 percent on Tuesday on short-covering, marking the strongest one-day percentage gain in eight weeks and closing at the highest level in two weeks. A strong commodity complex lifted soft commodities as financial concerns in the eurozone eased earlier in the session.
Coffee and cocoa futures also settled firm. The spot raw sugar contract hit a 29-year peak at 30.40 cents per lb in February, but then slumped a whopping 57 percent to a one-year low at 13 cents in early May on expectations of a sharp increase in supply in 2010/11.
ICE July raw sugar soared 0.91 cent, or 6.6 percent, in moderate volume to close at 14.80 cents per lb, the highest settlement since May 3. It was also the biggest one-day percentage gain since March 24. ICE July arabica coffee rose 1.70 cents, or 1.3 percent, to finish at $1.3425 per lb. ICE July cocoa rose $35 to settle at $2,849 per tonne, with a heavy 10,300 lots trading.
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