Robusta sets fresh four-year high, New York cocoa hits nine-month peak
- November robusta coffee was down 0.1% to $2,100 a tonne
- December New York cocoa was flat at $2,704 a tonne, having hit a fresh nine month high of $2,715
LONDON: Robusta coffee futures on ICE rose to a fresh four-year high on Wednesday amid signs of tightening supplies, while New York cocoa futures hit a nine-month peak.
Coffee
November robusta coffee was down 0.1% to $2,100 a tonne at 1308 GMT, after setting a four-year high of $2,130.
Dealers cited falling ICE exchange stocks, increased demand from roasters for robusta instead of its pricier arabica counterpart, as well as continued shipping backlogs, including out of top robusta producer Vietnam, as supportive factors.
"For the time being, there is no foreseeable alleviation to the international squeeze on global supply chains," said trader I&M Smith.
Strict measures to stop the spread of COVID-19 in Vietnam are prompting further supply jitters.
December arabica coffee rose 0.2% to $1.9425 per lb.
London cocoa hits fresh six-month high
Cocoa
December New York cocoa was flat at $2,704 a tonne, having hit a fresh nine month high of $2,715.
December London cocoa rose 0.2% to 1,838 pounds per tonne, after matching Tuesday's nine-month peak of 1,843.
Cocoa is gaining from the prospect of improved demand in the upcoming 2021/22 season (October/September), coupled with an expected drop in supply that should leave the market more or less balanced.
Dealers cited a lack of hedging pressure in the market, with top producer Ivory Coast having pre-sold much of its cocoa for the 2021/22 season. SUGAR
October raw sugar rose 0.9% to 19.65 cents per lb, having hit a two-week low on Tuesday at 19.44.
Sugar has been trading range bound of late, with lower production from top producer Brazil already priced in.
October white sugar rose 0.6% to $485.60 a tonne.
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