NEW YORK/LONDON: Arabica coffee futures on ICE turned higher on Monday, after an unexpected moderate frost hit parts of Brazil's main coffee region, but gains were limited as traders waited to learn the extent of the damage.
Sugar prices also moved up, rebounding from a three-week low on late-day buying, while cocoa prices firmed.
September arabica settled up 1.9 cent, or 1.3 percent, at $1.4945 per lb.
A moderate frost surprised producers in several areas of top grower Brazil's main coffee belt early Monday morning, where it is likely to trim the country's output in 2017, agricultural engineer Andre Alvarenga at Procafe analysts said.
Stronger gains, however, were limited as traders cautiously awaited damage reports.
"Gains of nearly 2 cents was powerful given the early bearish sentiment that was lingering following Friday's performance," said one US trader, referring to the prior session's nearly 8-cent tumble from an intraday 17-month peak of $1.548.
"I think as the week moves along, we will get a better idea."
Robusta coffee futures turned lower after finding early support from a poor harvest in Brazil, a late start to harvesting in Indonesia, and concerns over the impact of adverse weather on output in top grower Vietnam.
September robusta settled down $5, or 0.3 percent, at $1,814 per tonne, having touched a 16-month high of $1,866 on Friday, supported by tight global supplies.
Raw sugar futures firmed, buoyed by a shift of the global market into deficit after years of surpluses.
A slight reduction in the large net long position held by speculators did not appear to weigh heavily on sugar futures.
"Despite the fact that the funds are so long, the market is still holding," said Michael Liddiard of consultancy Agrilion.
October raw sugar on ICE settled up 0.06 cent, or 0.3 percent, at 19.37 cents per lb, after falling to 19.13 cents, the lowest for the spot contract since June 27.
October white sugar settled up $2.90, or 0.6 percent, at $534 per tonne.
The firm session came after RCMA Asia Pte Ltd's sugar unit scooped up about 500 lots, or 25,000 tonnes, of white sugar in a small delivery against the August contract, a trader with the Singapore firm confirmed.
September New York cocoa settled up $20, or 0.7 percent, at $3,085 per tonne.
September London cocoa settled up 20 pounds, or 0.8 percent, at 2,470 pounds per tonne.
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