March arabica coffee futures rose more than 3 pct on a firmer Brazilian currency on Thursday, while white sugar futures fell to their lowest in three months, pressured by persistent fund selling in thin trade. March arabica coffee settled up 2.65 cent, or 2.7 percent, at $1.0215 per lb, earlier rising 3.9 percent to $1.0325, lifted by the stronger Brazilian real.
A firmer Brazilian currency discourages producer selling in the top grower by reducing local-currency returns on dollar-traded commodities such as coffee. Drier weather in Brazil also supported prices, a US trader said. "Light showers will favor the southwest at the beginning of the period, but the majority of the time frame will be dry," weather service Radiant Solutions said in a note.
Technical buying also boosted prices, said Jack Scoville, vice president of Price Futures Group. March robusta coffee settled up $26, or 1.7 percent, at $1,556 per tonne, earlier hitting $1,558, near a one-month high.
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