Raw sugar futures soared nearly 8 percent on Thursday on investment fund buying sparked by a weak dollar, but arabicas fizzled and cocoa slipped on late technical pressure in the softs complex. New York's key March raw sugar futures climbed 1.62 cents, or nearly 7 percent, to end at 25.16 cents per lb, having hit a session peak at 25.41 cents.
The intra-day peak represented a rise of almost 8 percent and was the biggest percentage gain for spot sugar since the middle of May. "The common denominator is a weak dollar, with most of the commodities complex up," said James Kirkup, director and head of sugar brokerage at ABN Amro Markets (UK) Ltd.
Sterling Smith, an analyst for US brokers Country Hedging Inc in Minnesota, said sugar took off once the March contract touched off automatic buy orders at 24.70 to 25 cents, and then beyond 25.30 cents, all basis March. Dealers said volume was dominated by rolling forward of positions from November into January, with the front month at a discount of about $29 to $30. New York's December arabica coffee contract slid 2.10 cents to end at $1.7345 per lb. New York's December cocoa contract fell $4 to close at $2,740 per tonne.