NEW YORK/LONDON: Arabica coffee futures on ICE closed down on Wednesday as the threat posed to crops in Brazil from a forecast cold snap later this week appeared to recede slightly.
Raw sugar and cocoa futures closed up.
COFFEE
September arabica coffee settled down 1.3 cent, or 0.6%, at $2.0045 per lb.
The front month had risen to a peak of $2.1520 on Monday, the highest level in nearly seven years, as last week's strong frosts in top producer Brazil dented the outlook for next year's crop in the world's top producer.
Dealers were also keeping a close watch on the weather outlook for later this week, while noting some recent forecasts were not quite as cold as previous ones, and areas that might be impacted had already been damaged.
"Usually, it is the same plots that are prone to frost that freeze again. So even if this new cold front causes frost, much of the effect will likely be on already lost leaves and branches," said Rabobank analyst Carlos Mera.
September robusta coffee rose by $3, or 0.2%, at $1,930 a tonne.
SUGAR
October raw sugar ??settled up 0.26 cent, or 1.4%, at 18.61 cents per lb.
Dealers were also monitoring the weather outlook in Brazil with the cold snap later this week likely to hit sugar cane producing areas.
"The market remains focussed on cold and frosts later this week in Brazil," Commonwealth Bank of Australia analyst Tobin Gorey said in a note, adding producers and traders had good reason to be wary of selling.
Brazil's food supply and statistics agency Conab said on Wednesday that recent cold weather killed sugarcane plants in parts of the Centre-South region, exacerbating losses already caused by water stress.
October white sugar closed up $3.80, or 0.8%, at $458.50 a tonne.
COCOA
December London cocoa ??settled up 16 pounds, or 0.9%, to 1,702 pounds per tonne?, hitting 1,713 pounds during the session, the highest price since mid-May.
December New York cocoa rose by $33, or 1.4%, to $2,471 a tonne?, the highest since early June.
Dealers said the cocoa market appears to be reacting to ideas of improving demand, despite the large availability.
Comments
Comments are closed.