Arabica coffee extends rebound, sugar also climbs

LONDON: Arabica coffee futures on ICE rose to a three-week high on Tuesday boosted largely by technically-driven buying, while raw sugar prices also advanced.

COFFEE

* September arabica coffee was up 2.95 cents, or 2.9%, to $1.0595 per lb at 1417 GMT, after rising to a peak of $1.0610, its highest since June 5.

* The contract rose 2.3% on Monday.

* "We've seen a bit of spec buying. We've started to run into some origin selling but it is has not been enough to put the brakes on too heavily yet," one dealer said.

* "I think it (the rally) is triggered by technicals."

* Dealers said industry buyers were keeping on the sidelines and supplies remained ample.

* September robusta coffee was up $32, or 2.25%, at $1,455 a tonne.

SUGAR

* July raw sugar was up 0.13 cents, or 1.1%, at 12.40 cents per lb.

* Dealers said the market's main focus remained on the expiry of the July contract later this week, with the potential for a significant tonnage to be tendered.

* A weak start to monsoon season in India has given some support to prices.

* "Concerns may be arising from the very hot dry weather seen before the monsoons began and by the late arrival of the rains which are running at almost 40% below the long-term average," Sucden Financial senior trader Nick Penney said.

* August white sugar rose $2.60, or 0.8%, to $325.60 per tonne.

COCOA

* September New York cocoa rose $3, or 0.1%, to $2,490 per tonne.

* Dealers continued to keep a close watch on the weather in top producer Ivory Coast, where dryness was a concern.

* Unseasonably dry weather across Ivory Coast's cocoa regions last week could weaken the next main crop if rainfall does not increase in July, farmers said on Monday.

* September London cocoa was up 4 pounds, or 0.2%, at 1,836 pounds a tonne.