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SOFTS-ICE sugar, cocoa jump as dollar slides

By David Brough LONDON, May 10 (Reuters) - ICE July raw sugar futures surged by more than 5 percent and cocoa jumped on Monday, supported by a weaker dollar after global policymakers carved out an emergency rescue package for debt-laden nations. ICE arabica coffee futures also rose in modest volumes, supported by the softer dollar. ICE July raw sugar surged to a peak of 14.55 cents a lb before easing back to stand at 14.29 cents a lb, up 0.54 cent or 3.9 percent in volume of 10,534 lots at 1144 GMT, in a sharp upward correction after touching a one-year low on Friday. "It's either feast or famine. Today we're having a feast," said Gavin Templeton, a senior commodities trader with Rabobank. David Sadler, a senior sugar futures trader, wrote in brokerage Sucden's midday market report that the sharply weaker dollar was likely to be a major factor behind sugar's recovery. On Friday, raw sugar posted an unprecedented 12th weekly loss, weighed down by expectations of large supplies of the sweetener and worries over economic contagion from Greece, in a correction from a 29-year peak of 30.4 cents a lb on Feb. 1. Dealers said favourable weather in top sugar producer Brazil and an improving crop outlook in top consumer India had contributed to the weakness in the sugar market. Dealers took stock of a Pakistani sugar tender over the weekend. Bids in the international tender from Pakistan's state trading agency TCP to purchase 200,000 tonnes of white sugar ranged between $556.80 to $608 a tonne c&f, European traders said on Monday. The sugar market has been hampered by overall weakness in oil and other commodity markets linked to the deepening debt crisis in the euro zone, which the $1 trillion global emergency rescue package would seek to address. ICE July raw sugar futures were up 0.55 cent or 4 percent at 14.30 cents a lb at 1128 GMT. London August white sugar was up $12.80 or 2.9 percent at $450.60 per tonne in slim volume of 1,445 lots. ICE cocoa futures rose sharply, bolstered by the weaker dollar. Sterling-denominated London cocoa tracked the pound, as the Bank of England kept rates at 0.5 percent as expected, and made no change to its asset purchase target, keeping in place stimulus measures designed to nurse the economy back to health. July cocoa on ICE was up $80 or 2.7 percent at $3,096 a tonne. July cocoa on Liffe was up 9 pounds or 0.4 percent at 2,358 pounds a tonne, after touching a 32-year high for the benchmark second month of 2,429 pounds last week, supported by strong grindings data for the first quarter of 2010. Coffee futures were little changed in light volumes against a backdrop of ample global supplies. ICE July arabica coffee was up 0.25 cent or 0.2 percent at $1.3415 per lb. Liffe July robusta coffee was up $1 or 0.1 percent to $1,372 per tonne. (Reporting by David Brough; Editing by William Hardy) * Prices as of 1151 GMT Product Last Change Pct Move End 2009 Ytd Pct ICE sugar 14.27 0.52 +3.78 26.95 -47.05 ICE coffee 134.35 0.45 +0.34 137.60 -2.36 ICE cocoa 3096.00 80.00 +2.65 3310.00 -6.47 Liffe sugar 450.10 12.30 +2.81 710.20 -36.62 Liffe coffee 1373.00 2.00 +0.15 1332.00 3.08 Liffe cocoa 2361.00 12.00 +0.51 2271.00 3.96 CRB index 0.00 -261.32 -100.00 283.38 -100.00 Crude oil 78.05 2.94 +3.91 79.36 -1.65 Euro/dlr 1.30 0.02 +1.61 1.43 -9.44 * ICE sugar and ICE coffee in cents per lb, ICE cocoa, Liffe sugar and Liffe coffee in dollars per tonne. Liffe cocoa in pounds per tonne (david.brough@thomsonreuters.com ; +44 207 542 8421; Reuters Messaging: david.brough.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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