Tuesday saw the price of coffee, sugar and cocoa futures climb as a consequence of the softening U.S. dollar combined with uplifting economic data, according to Reuters.
Prior to Tuesday, cocoa futures had gone four consecutive days with losses, Bloomberg reports. For week-ended December 13, high-flying investors increased their investments on cocoa by 50 percent.
The production of sugar is strong in the European Union, Russia, Ukraine, India and Thailand.
"We believe the sugar market must incentivize further output (by plantings and investment) in order to bolster still anaemic global inventories," analyst Abah Ofon with Standard Chartered told Reuters. "This is key, as Brazil's cane output is likely to slow considerably in the current season, falling for the first time in a decade because of ageing cane and poor weather."
At 2 p.m. on Tuesday, cocoa futures gained 5.56 percent, a $115 rise to $2,185 per metric ton. Coffee futures rose 1.53 percent, a 3.35 cent increase to $2.228 per pound. Sugar futures advanced 1.73 percent, a 0.4 cent lift to 23.49 cents per pound.
Thus far this year, sugar futures have seen decreases of roughly 28 percent, Bloomberg reports.
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