NEW YORK/LONDON: Arabica coffee prices on ICE hit three month highs on Wednesday as the Brazilian real strengthened and concerns grew over prospects for central American output, while cocoa prices hit a one month top.
COFFEE
September arabica coffee rose 1.25 cents, or 1.1%, to $1.1385 per lb, having hit its highest since late-April at $1.1420.
Arabica is benefiting from a strengthening Brazilian real , which deters exporters from selling dollar-priced coffee by lowering their real-based returns, and as concerns grow that lockdowns and low prices could hurt central American output.
September robusta coffee rose $17, or 1.3%, to$1,367 a tonne.
Domestic coffee prices in Vietnam, the world's top robusta producer, look set to rise slightly following new coronavirus cases in the country's major coffee-growing region.
Vietnam's coffee exports in the first seven months of the year are expected to drop 1.4% from a year earlier to 1.06 million tonnes, government data showed.
COCOA
December London cocoa rose 22 pounds, or 1.4%, to 1,604 pounds per tonne? by 1228 GMT, having hit a one month top of 1,607.
Cocoa is consolidating after hitting a near two year low in mid-July, though its fundamentals remain weak.
Rabobank said it expects the North America, Asia and Europe third quarter cocoa grind, a measure of demand, to fall between 4.5% and 5% as economies struggle to fully reopen following coronavirus lockdowns.
It expects demand to recover slowly next year, growing at just 1.6% as second waves of the virus are expected, while production will likely increase between 2% and 3% amid benign weather conditions.
SUGAR
October raw sugar was flat at 12.01 cents per lb, after peaking at 12.27 cents on Tuesday, the highest since July 8.
October white sugar ??rose $2.20, or 0.6%, at $365.10 a tonne.