Arabica coffee futures vaulted 4.5 percent to a five-month high on Thursday, on a combination of fund and chart-based buying, and a sharply lower dollar. Raw sugar futures jumped to a 3-1/2-month high and New York cocoa rallied to a 2-1/2-month top, buoyed by the tumbling greenback in response to the US Federal Reserve's dovish statement on Wednesday.
May arabica coffee settled up 3.5 cent, or 2.7 percent, at $1.3255 per lb, after vaulting 4.5 percent to $1.349, the highest since October 16 on a continuation chart.
"It is a combination of the close through the 200-day moving average for the first time since 2014 (on Wednesday) and the break beyond $1.30," one US trader said.
"Taking out the December 15th high of 1.3045 is critical and I think it has led to increased short-covering."
Dealers said the rally may have caused speculators to have moved to a net long position for the first time since late August 2015. "I think the funds have covered (a net short) and now they are going long. I think it is technical move driven by the specs," one London dealer said.
Also adding to the bullish tone, top grower Brazil's real currency rose against the US dollar, deterring sales by producers in the country.
Dealers also noted ongoing concerns about the outlook for crops in top washed-arabica grower Colombia and No 1 robusta producer Vietnam have helped fuel this week's run-up.
May robusta coffee settled up $33, or 2.3 percent, at $1,459 per tonne.
A weak dollar coupled with continued supply concerns also helped to boost sugar prices with May raws closing up 0.52 cent, or 3.4 percent, at 15.99 cents per lb, after climbing to 16.02 cents, the highest level for the front month since January 2015.
"There is the general sentiment of potentially a larger than expected deficit this year and the prospect of a deficit again next year," Capital Economics analyst Hamish Smith said.
Thailand slashed its forecast for 2016 sugar exports to 7.1 million tonnes, or 20 percent below year-ago levels, a government official said. May white sugar settled up $9.50, or 2.1 percent, at $452.70 per tonne.
May London settled down 1 pounds, or 0.04 percent, at 2,260 pounds per tonne, pressured by the firm British pound . May New York settled up $76, or 2.5 percent, at $3,116 per tonne, the highest since January 5.