Arabica coffee steadies after hitting near 7 year high on Brazil frost fears
- September arabica coffee was down 0.7% to $2.0620
- October raw sugar rose 0.5% to $18.50 per lb, having hit its highest since late February at $18.65.
LONDON: Arabica coffee futures on ICE steadied on Tuesday after hitting near 7 year highs in the previous session as market players scrambled to assess crop damage from last week's frosts in top producer Brazil.
They remain on edge given a further cold snap is forecast for later this week, but have taken a step back for now as the market has gained some 30% since Monday last week.
COFFEE
September arabica coffee was down 0.7% to $2.0620 at 1058 GMT, having closed up 9.9% on Monday after peaking at $2.1520, its highest since October 2014.
The strong frosts reported over Brazil's agricultural regions last week are estimated to have hit some 11% of the total arabica coffee area, cutting potential output for next season.
Coffee, cocoa and sugar retreat amid selloff in oil and equities
Dealers said while some reports are casting doubt over the intensity of the coming cold front this week, further cold weather, even without frosts, is bad for the trees given they are already damaged.
There are also concerns about forecasts for light rains in the coming days, because if they are followed by frosts, the roots would freeeze, killing the tree completely.
November robusta coffee fell 0.4% to $1,968 a tonne.
SUGAR
October raw sugar rose 0.5% to $18.50 per lb, having hit its highest since late February at $18.65.
Dealers said the sugar market had woken up to the potential of further damage from frost in the cane growing areas of Brazil, also a top sugar producer.
Brazil’s coffee, sugar crops threatened by more frigid temperatures
Frosts pose less of a threat to Brazil's sugar production, hence the market did not react as much as coffee did last week, though it is up some 8.5% since Monday last week.
October white sugar rose 0.9% to $460.60 a tonne.
COCOA
December London cocoa rose 0.6% to 1,688 pounds per tonne, as the market extended its rebound from a one-year low of 1,521 pounds set on July 15.
Rainfall was below average in many of top producer Ivory Coast's cocoa regions last week, but previously ample moisture has allowed an abundance of large fruits to develop.
London cocoa hits 1-1/2 month peak, raw sugar hits 2-week trough
September New York cocoa was flat at $2,392 a tonne.
Comments
Comments are closed.