Arabica coffee futures closed at their highest level in 13-1/2 years on Tuesday, buoyed by tight supplies and upward technical momentum. Cocoa futures eased on profit-taking and heavy volume, while many speculators shifted their concern away from an export ban in top grower Ivory Coast.
Instead commodity investors focused on breaking news in the Middle East, which also helped support sugar. ICE March arabicas jumped 4.60 cents, or 1.9 percent, to settle at $2.4940 per lb, the loftiest close for the spot contract since June 1997. Lower production of washed arabica beans, particularly from key producer Colombia, has buoyed arabica prices in recent months. Cocoa futures on ICE dipped on profit-taking as market participants waited to see how a call for a month-long export ban in top grower Ivory Coast would impact future bean supply.
ICE benchmark March cocoa fell $39 to close at $3,313 per tonne, just below last week's one-year peak of $3,420 per tonne. Volume was heavy with around 27,000 lots trading, up around 80 percent from the 30-day average, boosted in part by March/May position rolling ahead of the spot contract's first notice day February 14. Open interest in ICE cocoa futures soared to a near three-year high on January 31. ICE March raw sugar inched down 0.01 cent to finish at 33.96 cents per lb, below its 30-year peak of 34.77 cents a lb, touched on December 29.