Arabica coffee on ICE firmed in technically driven dealings on Thursday, supported by a weaker dollar, while a stronger pound weighed on London cocoa. Raw sugar futures dipped as harvest weather conditions improved and port congestion eased in centre-south Brazil. Upside in arabica coffee was capped by an ample harvest now under way in top grower Brazil. "If you look at the Brazilian (output) numbers, they're huge, but there is a big problem on the quality side due to rainfall," a senior coffee trader said.
September arabica futures were up 2.35 cents, or 1.7 percent, at $1.4205 per lb at 1329 GMT. Concerns over a poor robusta coffee harvest in Brazil underpinned the robusta market, with plentiful supplies in top grower Vietnam keeping a lid on futures prices.
September robusta coffee was up $6, or 0.35 percent, at $1,714 per tonne, not far off a 10-month peak of $1,748 touched on June 9. In cocoa, strength in the pound weighed on London sterling-based futures as positions were more expensive in terms of other currencies. London September cocoa was down 10 pounds, or 0.4 percent, at 2,254 pounds per tonne. New York September cocoa traded up $28, or 0.9 percent, at $3,184 per tonne.
Raw sugar futures on ICE erased earlier gains on improved harvest weather in centre-south Brazil. Dealers focused on the expiry of the July raw sugar contract on June 30, with traders anticipating a moderate delivery. October raw sugar was down 0.16 cent, or 0.8 percent, at 19.01 cents per lb.
"Weather in centre-south Brazil is seemingly back to normal, allowing the crush to proceed and sugar to be loaded at ports," said Nick Penney, a senior trader with Sucden Financial Sugar. "Latest forecasts point to normal conditions with only light rains this week in Sao Paulo state, Parana and Mato Grosso do Sul." August white sugar was down $0.30, or 0.06 percent, at $530.40 per tonne. Monsoon rains in India were 7 percent below average in the week ending June 22, the weather office said on Thursday, narrowing the deficit since the season started on June 8.
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