SOFTS-Coffee, sugar prices rise as commodities rebound

Tue Dec 20, 2011 3:03pm GMT
 

* Big northern hemisphere crops limit upside in sugar

* Cocoa dealer sees big swings on low volumes

* Vietnam coffee harvest gathers pace, stocks to rise (Adds quotes, updates prices)

By David Brough

LONDON, Dec 20 (Reuters) - Coffee, sugar and cocoa futures on ICE rose on Tuesday, swept up in a broad-based advance in crude oil and many other commodity markets linked to a softer dollar and stronger economic data.

"It's all about the macro picture - everyone has half an eye on the latest euro zone headlines," one soft commodities trader said.

ICE May arabica coffee futures on ICE were up 4.45 cents or 2.0 percent to $2.2655 per lb at 1445 GMT. On Monday the second position contract fell to a one-year low of $2.1235 per lb.

Stocks and the euro rose on Tuesday on signs of improved economic prospects in Germany and a better-than-expected Spanish short-term debt auction, but concerns about the euro zone debt crisis kept a lid on gains.

The 19-commodity Thomson Reuters-Jefferies CRB index rose 4.88 points or 1.65 percent to 300.70 points.   Continued...

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