LONDON: Robusta coffee futures on ICE rebounded on Thursday after setting a 2017 low as the market's recent slide at least temporarily ran out of steam.
COFFEE
March robusta coffee futures were up $23, or 1.1 percent, at $2,129 per tonne at 1440 GMT. The front month earlier fell to $2,092, its lowest since Dec. 29.
"We've had a few down days and a little bit of early follow-through (selling) and the market has run out of sellers for the time being. So it has rebounded a little," one dealer said.
The market's recent weakness has been driven partly by signs that Brazil may decide not to import robusta despite an internal shortage of the variety.
The instant-coffee industry has requested that imports be allowed but the proposal has been opposed by farmers.
"It is still lurking in the background but I don't think they are going to allow coffee in," the dealer added.
March arabica coffee rose 2.20 cents, or 1.5 percent, to $1.4510 per lb.
SUGAR
White sugar futures were mixed, with front month March weakening as funds rolled forward long positions into the May contract.
Dealers said a small delivery was expected against March, which expires on Monday, as demand from Myanmar had tightened supplies in Asia.
The sugar purchased by Myanmar was expected ultimately to be destined for China.
Prices for March may also have been weighed down by talk that sugar from Central America could be delivered. The sugar is seen as less attractive than Brazilian supplies due to potentially higher freight costs to ship to key import markets.
March white sugar was off $2.40, or 0.4 percent, at $542.00 a tonne.
Raw sugar futures edged higher, though the market lacked a clear overall trend as it waited to see whether or when India might import supplies following a poor crop this year.
March raw sugar rose 0.04 cent, or 0.2 percent, to 20.80 cents per lb.
COCOA
New York cocoa futures weakened slightly, hovering around the prior session's five-year low.
New York March cocoa fell $2, or 0.1 percent, to $1,991 a tonne. The front month on Wednesday hit $1,982, its weakest since December 2011.
Dealers said supplies remained ample, with a large global surplus widely forecast for the 2016/17 season.
May London cocoa was up 7 pounds, or 0.4 percent, at 1,640 pounds a tonne.
Comments
Comments are closed.