Arabica coffee prices rallied 3.1 percent to within reach of a 13-year high on Wednesday. Raw sugar futures advanced to a near nine-month high, fuelled by worries over disruption of supply in top-grower Brazil and strong demand for prompt supplies. Coffee and sugar mirrored advances in the broader commodity complex, but analysts said bullish market fundamentals in both commodities enabled them to withstand the recent bout of weakness in other markets.
New York's December arabica coffee futures climbed for the second straight session, rising 5.85 cents to settle at $1.9675 per lb. The contract peaked at $1.9815, just short of the 13-year peak on September 8 at $1.9865. On a spot continuation basis futures reached their highest since September 1997.
New York's March raw sugar contract rose 0.48 cent to end at 28.81 cents per lb, the third straight day it had risen and the highest close on the spot daily charts since early February. The key December cocoa contract in New York rose $27 to $2,777 per tonne.