LONDON: Arabica coffee futures on ICE fell on Friday as the market consolidated after hitting a four-year peak in the prior session, while raw sugar also fell.
July arabica coffee was down 1.4% to $1.5215 per lb at 1325 GMT, having hit $1.5540 on Thursday, its highest since January 2017.
Arabica has been supported by dry weather in top producer Brazil that is expected to reduce this year’s harvest.
Also giving the market a boost, the Brazilian real has been strengthening, hitting its highest in more than three months on Thursday. A strong real deters farmers and exporters from selling dollar-priced arabica by lowering returns in local currency terms.
July New York cocoa edged up 0.1% to $2,415 a tonne. The contract hit a 5-1/2 month low of $2,347 on Tuesday.
July London cocoa edged up 0.1% to 1,613 pounds per tonne. The contract hit its lowest since last July on Tuesday at $1,575.
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