New York coffee and sugar recover

25 Jun, 2011

Sugar climbed to a higher close on Thursday after early selling prompted by lower crude oil and corn sparked short-cover buying. Short covering also sent coffee to a higher close, but gains in both coffee and sugar will need to be confirmed by continued buying on Friday. US cocoa ruptured strong resistance at a 200-day moving average. But a lack of follow-through buying drew profit-takers who pressured bean prices to finish lower.
Key July raw sugar contract rose 0.35 cent to settle at 27.58 cents per lb., a 1.29 percent increase. July futures recouped losses to finish higher after a severe slide to 25.69. its lowest since June 16. September arabica coffee futures jumped 2.50 cent to end at $2.4870 per lb, a 1.02 percent gain Earlier, however, it plumbed lows last seen on January 28 at $2.38.20 per lb. The session peak of $2.53 was the highest since Monday. Key September cocoa futures finished $31 lower at $2,987 a tonne, a 1.02 percent loss. Earlier, September rose to a $3,069 peak, a level last visited on May 13. September briefly poking above the 200-day moving average at $3,058 a tonne, a strong resistance level.

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