Liffe cocoa futures rose to a 32-year high on Wednesday after a larger-than-expected rise in Europe's quarterly grind signalled firmer demand, boosting US cocoa to its biggest daily gain in seven months. Sugar futures slipped and arabica coffee finished down a shade, although prices remained near a 12-year high hit in June.
Europe's cocoa grind - an indicator of demand - rose 12.7 percent year-on-year to 328,704 tonnes in the second quarter of 2010. "It was above expectations, clearly the economic recovery has had some play," Kona Haque, commodities analyst at Macquarie Bank said. US cocoa futures soared more than $100 per tonne on a combination of bullish factors - European grind data, strong London cocoa market and the rallying pound against the dollar, traders said.
ICE September cocoa surged $108 or 3.5 percent to close at $3,153 per tonne, the strongest close for the second position since May 6. Sugar futures fell, although whites remained near last week's four-month highs, supported by a heavy line-up of vessels at Brazilian ports, reflecting strong global demand, dealers said. ICE October raw sugar futures settled down 0.20 cent or 1.2 percent at 16.97 cents a lb. September arabicas on ICE fell 0.75 cent to finish at $1.6490 a lb.
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