Arabica coffee climbs on crop concerns, sugar slips
- March London cocoa rose 0.1% to 1,707 pounds a tonne
- March raw sugar fell 1% to 19.46 cents per lb
- March arabica coffee was up 0.6% to $2.3860 per lb
LONDON: Arabica coffee futures on ICE rose on Wednesday, with the market buoyed by crop concerns in several major producing countries, while sugar prices weakened.
Coffee
March arabica coffee was up 0.6% to $2.3860 per lb at 1200 GMT, but remained well below last week's 10-year high of $2.5235.
Commerzbank said in a note that adverse weather in Brazil and Colombia had dented prospects for next year's crops, while in Vietnam ageing trees were likely to show lower yields.
"It would not surprise us therefore if coffee prices were not to have peaked just yet," the bank said.
March robusta coffee rose 0.6% to $2,311 a tonne.
Arabica coffee edges up as Brazil currency recovers ground
Sugar
March raw sugar fell 1% to 19.46 cents per lb.
Dealers said rains in the key Center-South region of Brazil may improve the outlook for next year's cane crop.
"The incoming rains in the Center-South will support crop growth and boost soil moisture," weather service Maxar said in a report issued late Tuesday.
March white sugar fell 1.1% to $505.20 a tonne.
A World Trade Organization panel ruled in favour of Brazil, Australia and Guatemala on Tuesday in their trade disputes with India over sugar subsidies and asked New Delhi to conform with global rules.
Cocoa
March London cocoa rose 0.1% to 1,707 pounds a tonne.
A total of 29,900 tonnes of cocoa was tendered against the ICE December London cocoa contract, exchange data showed on Wednesday.
March New York cocoa was down 0.2% at $2,499 a tonne.
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