LONDON: Robusta coffee futures on ICE rose on Wednesday, regaining some ground after their recent decline to a five-week low, while sugar
and cocoa prices also gained.
May robusta coffee rose by $7, or 0.5%, to $1,407 a tonne at 1448 GMT, with the market extending its rebound after dipping to a five-week low of $1,330 on Monday.
Dealers said the prospect of a large robusta crop in Brazil this year should help keep a lid on prices.
Vietnam’s February coffee exports were down 23.5% from January at 122,833 tonnes, government customs data showed on Tuesday.
May arabica coffee rose by 0.3 cents, or 0.2%, to $1.3070 per lb.
Brazil, which in the past rarely delivered coffee at the exchange, has now surpassed Honduras to become the main origin of certified arabica stocks.
May raw sugar rose by 0.15 cents, or 0.9%, to 16.05 cents per lb, boosted partly by a slight recovery in Brazil’s real currency after its recent slump.
Dealers said a stronger Brazilian currency should reduce the incentive for producers to sell in the world’s top exporter.
Sugar production in the key Centre-South region of Brazil is also expected to fall this year, with consultancy Datagro on Wednesday forecasting a drop to 36.7 million tonnes from the prior season’s 38.5 million.
May white sugar rose by $2.70, or 0.6%, to $455.40 a tonne.
May London cocoa rose by 4 pounds, or 0.2%, to 1,757 pounds a tonne.
Dealers noted March’s premium to May remained strong at around 132 pounds in the run-up to the front’s month expiry next week despite continued grading activity.
May New York cocoa rose by $23, or 0.9%, to $2,576 a tonne.
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