US cocoa futures settled up nearly 2 percent on Thursday, on chart-based buying and following positive European demand data. Raw sugar closed at a six-month low as supply availability was perceived as improving, while arabica coffee futures saw a strong session as May/July spreading dominated. The benchmark May raw sugar contract dropped 0.35 cent, or 1.4 percent, to finish at 24.44 cents per lb, the weakest settlement for the spot position since October 6, 2010.
May closed just below the 50 percent Fibonacci retracement level of the 2010-2011 rally. July arabica coffee futures gained 1.45 cents, or 0.5 percent, to close at $2.8515 per lb. Second-position July moved closer to last month's 34-year high of $2.9665 per lb. Key July cocoa futures climbed $57, or 1.9 percent, to close at $3,127 per tonne. The first-quarter 2011 North American cocoa grind data was scheduled for release at 4 pm EDT (2000 GMT), with estimates ranging from 2-5 percent higher. May/July position continued ahead of first notice day for May on Friday, said traders.