Arabica coffee futures closed at their highest level in 13-1/2 years on Tuesday, buoyed by tight supplies and upward technical momentum. Cocoa futures eased on profit-taking and heavy volume, while many speculators shifted their concern away from an export ban in top grower Ivory Coast. Instead commodity investors focused on breaking news in the Middle East, which also helped support sugar.
ICE March arabicas jumped 4.60 cents, or 1.9 percent, to settle at $2.4940 per lb, the loftiest close for the spot contract since June 1997. Markets were also focused on the crop in top robusta producer Vietnam, where traders said coffee may face delays or even defaults as rising prices make it difficult to secure the required volumes in the domestic market for shipment.
Cocoa futures on ICE dipped on profit-taking as market participants waited to see how a call for a month-long export ban in top grower Ivory Coast would impact future bean supply. ICE benchmark March cocoa fell $39 to close at $3,313 per tonne, just below last week's one-year peak of $3,420 per tonne.
Open interest in ICE cocoa futures soared to a near three-year high on January 31. Raw sugar futures reversed lower but remained near their 30-year peak, with the market's bullish outlook of tight supplies and surging oil prices seen keeping the market supported going forward. ICE March raw sugar inched down 0.01 cent to finish at 33.96 cents per lb, below its 30-year peak of 34.77 cents a lb, touched on December 29.
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