Arabica coffee hits 4-year high, sugar also rises
- July arabica coffee was up 0.35 cent, or 0.2%, at $1.5020 per lb.
- May raw sugar was up 0.13 cent, or 0.7%, at 17.66 cents per lb after setting a contract high of 17.89 cents.
LONDON: Arabica coffee futures on ICE rose to the highest level in more than four years on Thursday, boosted by the prospect of a much smaller Brazilian crop this year and expectations that demand may soon begin to rebound.
COFFEE
July arabica coffee was up 0.35 cent, or 0.2%, at $1.5020 per lb by 1341 GMT after rising to a peak of $1.5190, its highest since February 2017.
The market has been supported by dry weather in Brazil in recent months which is expected to reduce this year's harvest in the world's top producer and contribute to a tighter supply outlook in coming months.
"The uncertainty surrounding the actual volume of the Brazilian crop, harvesting of which has begun and which is expected to be very weak, is currently deterring producers from selling any significant quantities," Commerzbank said in a note.
"At the same time, the progress being made with coronavirus vaccination programmes in many countries is giving rise to hopes that demand will pick up," the bank added.
July robusta coffee fell by $12, or 0.8%, to $1,527 a tonne.
SUGAR
May raw sugar was up 0.13 cent, or 0.7%, at 17.66 cents per lb after setting a contract high of 17.89 cents.
Dealers said the market was supported by a deteriorating outlook for production in the key Centre-South region of Brazil following drier-than-normal weather.
August white sugar rose by $3.90, or 0.85%, to $464.70 a tonne.
COCOA
July New York cocoa rose by $10, or 0.4%, to $2,405 a tonne.
July London cocoa rose by 2 pounds, or 0.1%, to 1,601 pounds a tonne.
Around 15% of cocoa farms in the world's top grower Ivory Coast are in protected forest areas, potentially breaching standards expected in upcoming European Union law, a study commissioned by the country's regulator found.
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