Sugar, cocoa and arabica coffee all turned higher early on Tuesday, tracking rebounds in many other commodity markets and equities, boosted by data showing US consumer confidence rose more than expected in August. Dealers said sugar was also supported by a tightening supply balance for 2010/11.
Merchant Czarnikow said on Tuesday the sugar market should be in "equilibrium" in the coming year rather than surplus. ICE October raw sugar futures rose 0.39 cent or 2.0 percent to 20.20 cents a lb. Cocoa futures on ICE fell to the lowest levels in more than one year on Tuesday before the broad-based rally helped the market move into positive territory.
December cocoa futures on ICE stood $7 higher at $2,721 a tonne after earlier slipping to $2,681, the lowest level for the second month since mid-July 2009. December arabica futures on ICE rose 1.00 cent or 0.6 percent to $1.8240 per lb.
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