ICE raw sugar futures rallied over 4 percent early on Friday, approaching Wednesday's 30-year peak, and were on course to end the year up by around 18 percent, bolstered by tight global supplies. Sugar markets are underpinned by tight near-term availability as India, the world's second-largest producer after Brazil, looked poised to permit limited exports in 2011.
ICE March raw sugar futures were up 1.22 cent or 4.02 percent at 31.60 cents a lb at 1243 GMT. They reached a peak of 34.77 cents a lb on Wednesday and then slid 10 percent on Thursday in their biggest intraday percentage decline in more than a decade as investors squared books before year-end.
ICE cocoa futures rose on Friday, underpinned by concerns that a power struggle after an election in top producer Ivory Coast could disrupt supplies to the international market. ICE second-month cocoa looked poised to end 2010 down around 8 percent year-on-year. The contract traded $17 higher at $3,033 a tonne at 1250 GMT.
ICE arabica coffee firmed and neared last week's 13-1/2-year peak. ICE second-month arabicas appeared set to end 2010 up by around 75 percent, underpinned by a shortage of high-quality Colombian arabica beans. ICE second-month arabicas were up 1.35 cent or 0.6 percent at $2.3905 a lb at 1245 GMT, below the December 22 peak of $2.4350. "High quality Colombian arabica is definitely going to be the market driver in the New Year - there just is not enough supply," said Rabobank's Flury.