Arabica coffee futures on ICE jumped on Wednesday, as a stronger Brazilian currency helped futures rebound from the 13-year lows seen in the previous session, while sugar fell and cocoa prices rose. May arabica coffee settled up 3.7 cents, or 4 percent, at 95.35 cents per lb in its best daily performance in 2019. Prices were buoyed by some short-covering against the backdrop of a stronger currency in top-grower Brazil, dealers said. A stronger Brazilian currency can help discourage producer selling.
The front month has shed nearly seven percent so far in 2019 as the market struggles to absorb a massive crop, especially from top grower Brazil. In the previous session, prices crashed to a 13-year low of 91.25 cents per pound. Total open interest fell on Tuesday by 801 lots to 356,656 lots. This was its first decrease in more than three weeks.
That could signify "that people are starting to say enough is enough - it's far cheap enough," said Jack Scoville, vice president at Price Futures Group in Chicago. May robusta coffee settled up $44, or 3.1 percent, at $1,457 per tonne after dipping on Tuesday to a three-year low of $1,395.
May raw sugar settled down 0.24 cent, or 1.9 percent, at 12.42 cents per lb.
May white sugar settled down $3.90, or 1.2 percent, to $327.20 a tonne.
May New York cocoa settled up $20, or 0.9 percent, at $2,376 per tonne, after peaking at $2,393, the highest since Jan. 11. This was its ninth consecutive positive finish. May London cocoa settled up 10 pounds, or 0.6 percent, at 1,780 pounds per tonne after hitting a nearly six-week high of 1,783 pounds.
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