Arabica coffee extends rebound, sugar also rises
- September arabica coffee rose 2.1 cents, or 2.1%, to $1.0220 per lb by 1213 GMT.
- October raw sugar was up 0.28 cents, or 2.4%, at 12.05 cents per lb.
- September New York cocoa fell $3, or 0.1%, to $2,235 a tonne.
LONDON: Arabica coffee futures on ICE rose on Tuesday, extending the prior session's steep advance, boosted by short covering triggered both by concerns about cold weather in top producer Brazil and more supportive price charts.
COFFEE
September arabica coffee rose 2.1 cents, or 2.1%, to $1.0220 per lb by 1213 GMT.
Dealers said there were concerns about a strong cold front moving into Brazil, although meteorologists due not see a high chance of frosts over Brazil coffee fields.
Some Costa Rican coffee may also go unharvested if a coronavirus-induced foreign labour shortage is not resolved soon.
More supportive price charts helped to generate additional buying after the market consistently found support during the last couple of weeks around 94.55 and 94.70 cents, prompting some to believe a base had been formed.
September robusta coffee rose $8, or 0.7%, to $1,186 a tonne.
SUGAR
October raw sugar was up 0.28 cents, or 2.4%, at 12.05 cents per lb.
Dealers said the expiry of the July contract later on Tuesday was providing a short-term focus with a small delivery expected following a steep decline in the open interest during the last few days.
August white sugar rose $7.80, or 2.2%, to $360 a tonne.
COCOA
September London cocoa fell 22 pounds, or 1.3%, to 1,660 pounds a tonne with the market sliding back down towards a more than one-year low of 1,656 pounds set on Monday.
Sluggish demand and an expected rise in production in the upcoming 2020/21 season continued to provide a bearish backdrop.
September New York cocoa fell $3, or 0.1%, to $2,235 a tonne.
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