Arabica coffee retreated on profit-taking after touching a near 13-year high on Monday, but analysts said a shortage of high-quality beans and bullish technical charts indicated the potential for further gains. Sugar and cocoa futures held quietly steady.
New York's December arabica coffee contract fell 1.80 cents to end at $1.8325 a lb, having traded at a session top of $1.8865, its loftiest since September 1997. On Friday, the contract closed at $1.8505, the highest settlement close since December 1997. Since the start of the rally on June 10, New York arabica futures have shot up over 40 percent in value. Sugar futures were steady, underpinned by continued port delays in the world's number one producer/exporter Brazil and strong nearby demand.
New York's October raw sugar contract climbed 0.12 cent to finish at 20.07 cents per lb. It was the highest close on the spot daily charts since March 7. On the demand side, Iraq has issued a tender for a minimum of 200,000 tonnes of white sugar, according to the website of the Iraqi Foodstuffs Company. New York's December cocoa contract increased $7 to close at $2,834 per tonne.