LONDON: Arabica coffee futures fell on Wednesday, erasing some of the previous session’s gains, while cocoa rose on concern over the potential for a poor mid-crop in Ivory Coast.
Coffee
Arabica coffee was down 1.3% at $3.8405 per lb by 1151 GMT. Prices had risen by 2.4% on Tuesday.
Dealers said the focus remained on the weather in top grower Brazil, where there have been some showers in coffee areas but more rain is needed. There are expected to be only scattered showers over the next few days.
Any support from weather concerns continued to be offset by concern that rising retail prices have started to erode demand.
Robusta coffee fell 1.2% to $5,339 a metric ton.
Cocoa
London cocoa rose by 2.75% to 6,436 pounds a ton.
Dealers said the market was showing early signs of breaking out of its recent trading band, climbing to a peak of 6,475 pounds, the highest level since March 20.
The prospect of a poor mid-crop in top grower Ivory Coast remains a supportive factor.
New York cocoa WAS UP 3% AT $8,425 a ton.
Dealers said the expiry of May New York cocoa options on Friday was providing a short-term focus.
Arabica coffee, raw sugar lower
Sugar
Raw sugar lost 1% to 19.16 cents per lb.
Dealers said mostly dry weather in Brazil remained a concern and could hamper development of the new crop.
White sugar fell 0.9% to $540.90 a ton.
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