Arabica coffee rise on deficit forecast, sugar eases

ICE arabica coffee futures firmed on Monday after a forecast for a global deficit by the International Coffee Organisation (ICO), while raw sugar dipped. Cocoa steadied, above last week's 5-1/2-week lows, pressured by a strong crop in top grower Ivory Coast.
ICE March arabica coffee rose 0.9 cents, or 0.5 percent, to trade at $1.8765 a lb at 1437 GMT. January robusta coffee rose $9, or 0.5 percent, to $2,028 a tonne. Arabica coffee futures trading was choppy as dealers gauged the impact of weather on development of top grower Brazil's 2015/16 crop after a drought earlier this year.
Brazil's main coffee and sugar cane belt received scattered showers over the weekend but widespread rains remained elusive over the parched south-eastern region, forecasters said on Monday. "We expect prices to go up over the next month," said Michaela Kuhl, soft commodities analyst with Commerzbank, referring to expectations for a tightening global market.
The coffee market will be in a deficit of 800,000 60-kg bags in 2014/15, an ICO official said on Friday. New York ICE raw sugar futures inched lower, with the market focused on the winding down of the crush in centre-south Brazil. "Rains in Brazil are weighing on prices, because prospects for the next harvest are looking a bit better," Kuhl said. Dealers expect Brazilian Unica cane data later this week on the progress of the crush in the second half of October.
Front-month March raw sugar on ICE dipped 0.13 cent, or 0.8 percent, to trade at 15.56 cents a lb, within sight of Thursday's low of 15.42 cents, the weakest level since September 29. "The market is in no man's land at present between 15.50 cents and 16.00 cents and we expect support around 15.50/15.42," said Thomas Kujawa of brokerage Sucden Financial Sugar.
London ICE December white sugar traded down $0.90, or 0.2 percent, at $418.00 a tonne. New York March cocoa on ICE edged up $6, or 0.2 percent, at $2,889 a tonne. ICE futures prices hit a 5-1/2-month low of $2,853 last week, weighed by West African supplies. London March cocoa futures were down 3 pounds, or 0.2 percent, at 1,899 pounds per tonne.