Arabica coffee prices surged to close up 3 percent in heavy volume on Thursday as funds added positions and a lack of origin selling provided little resistance. Cocoa futures finished slightly lower as the conflict in top grower Ivory Coast intensified, with United Nations peacekeepers surrounding the defenders of the nation's incumbent leader Laurent Gbagbo, while ICE raw sugar futures eased.
The three US markets saw heavy volume on position rolling out of the spot contracts. Arabica coffee moved toward a 34-year high of $2.9665 a lb hit on March 9, and tight supplies continued to underpin the market. ICE May arabica coffee surged 7.65 cents or 2.9 percent to finish at $2.7280 per lb. The market scored its biggest one-day percent gain in five months on a flurry of short-covering, possibly marking a key reversal higher. After correcting lower Wednesday, fund short-covering and buying lifted prices once again.
ICE cocoa futures prices have fallen by one-fifth since hitting a 32-year high at $3,775 per tonne a month ago. ICE July cocoa finished down $12 at $3,002 a tonne, with dealings dominated by May/July spreading. ICE May raw sugar futures fell 0.21 cent to close at 26.50 cents per lb.
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