LONDON: New York cocoa futures on ICE climbed to their highest since late September on Wednesday, supported by low exchange stocks, while arabica coffee rose sharply to a two-month peak as Storm Iota caused devastation in Central America.

March New York cocoa was up $45, or 1.8%, at $2,562 a tonne at 1512 GMT after rising to a peak of $2,564, the highest since late September.

Dealers said exchange stocks had been declining following the introduction this season of a premium on physical purchases from Ivory Coast and Ghana designed to alleviate poverty among farmers in the West African countries.

Commerzbank said in a note that “ever more traders appear to be resorting to cocoa on the exchange so as to avoid the higher costs of Ivorian and Ghanaian product.”

March London cocoa was up 31 pounds, or 1.8%, at 1,735 pounds a tonne.

March arabica coffee rose 4.20 cents, or 3.5%, to $1.2370 per lb after climbing to a two-month high of $1.2395.

January robusta coffee rose $27, or 1.9%, to $1,443 a tonne.

March raw sugar was up 0.14 cents, or 0.9%, at 15.45 cents per lb. The front month had peaked at 15.66 cents on Tuesday, its highest since mid-February. March white sugar was up $3.50, or 0.85%, at $417.60 a tonne.—Reuters