Arabica coffee futures on ICE Futures US climbed nearly three percent in early trade Tuesday on fund and roaster buying amid March/May spreading while cocoa gained ground on light volume, traders said.
On the electronic platform, ICE benchmark May was up 4.10 cents or 2.7 percent at $1.565 per lb at 9:42 am (1442 GMT), in wide dealings from $1.501 to $1.5735. The rest rose 3.85 to 4.15 cents.
Coffee hit a 10-year high Friday but closed lower on profit-taking. Speculators boosted their net longs in arabica coffee in the week ending February 12, by 12 percent to 56,205 lots, compared to 50,335 lots the week previous, weekly Commodity Futures Trading Commission data showed Friday. Key electronic ICE May was up $14 at $2,540 per tonne at 9:44 am, in dealings from $2,506 to $2,548. The rest were $9 to $29 higher.
Rains were patchy in Ivory Coast's main cocoa growing regions during the last week, and farmers said more downpours were needed to boost the April-to-September mid -rop in the world's largest exporter.