LONDON: Arabica coffee futures on ICE fell back from a seven-month high on Friday as the market focus remained on the extent of the threat of crop damaging frost in Brazil this weekend.
COFFEE
September arabica coffee was down 2.40 cents, or 2.1pc, to $1.1125 per lb at 1445 GMT, after peaking at $1.1565, its highest since Nov. 20, 2018.
Dealers said concerns centred on the state of Parana where coffee production totals about one million bags and views on the extent of the threat varied significantly.
"I don't think it is as big (a threat) as some others are saying," one dealer said, adding a relatively small proportion of Brazil's crop was threatened.
Dealers said the a weakening in Brazil's real on Friday also added to the downward pressure on prices.
September robusta coffee fell $24, or 1.6pc, to $1,450 per tonne, after touching a one-month peak of $1,493.
COCOA
September New York cocoa rose $42, or 1.7pc, to $2,475 per tonne.
Dealers' worries about dry weather in the Ivory Coast and Ghana were underpinning prices while they awaited further clarity about a plan by Ivory Coast and Ghana to introduce a floor price for exports.
"There is some fear related to the floor price but that's just one factor, and we're still waiting (for details on) what will be decided so we can better understand the impact," one dealer said.
September London cocoa fell 9 pounds, or 0.5pc, to 1,839 pounds per tonne after rising sharply on Thursday when New York-based markets were shut for US Independence Day.
SUGAR
October raw sugar was up 0.01 cents at 12.55 cents per lb.
Dealers said the market continued to keep a close watch on India's monsoon with rainfall beginning to pick up but concerns still persisted that it will be weaker-than-normal this year, which could curb sugar production.
August white sugar rose $0.30, or 0.1pc, to $320.60 per tonne.
Comments
Comments are closed.