LONDON: Arabica coffee futures on ICE rose on Tuesday but remained some way off last week’s almost seven-year high above $2 per lb as investors continued to assess the damage from last month’s frost in top producer Brazil.
COFFEE
September arabica coffee was up 1.8% at $1.7590 per lb at 1358 GMT??.
An estimated 11% of Brazil’s arabica growing areas were hit by frost last month, causing extensive damage to next year’s crop.
Broker Marex said it expects 6.7-8.8 million bags worth of damage from the frost and the dry weather that preceded it, leaving arabica production down at 42.6-44.8 million bags next season from a previous estimate of 51.5 million.
Brazilian green coffee exports fell to 142,914 tonnes in July from 167,791 tonnes a year earlier, data showed.
Honduran coffee exports jumped in July by 123% from a year earlier, leaving total exports from October to July up 2% year on year.
September robusta coffee rose 1.8% to $1,785 a tonne.
SUGAR
October raw sugar was little changed at 17.96 cents per lb, some way off last week’s five-month high of 18.81 cents. Dealers said sugar prices are unlikely to fall much from current levels given ongoing concerns over the cane crop in top producer Brazil, which was hit by dry weather this season and was also affected by the frost.
Brazil’s sugar exports fell to 2.47 million tonnes in July, compared with 3.29 million tonnes a year ago, data showed. Dealers said the drop was probably owing to poor demand because Brazilian output is still only about 7% lower than a year ago.
October white sugar edged up 0.1% to $448.20 a tonne.
COCOA
December New York cocoa rose 1.5% to $2,458 a tonne. December London cocoa rose 1% to 1,688 pounds per tonne.
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