Arabica, robusta coffee hold near 10-year peaks

NEW YORK/LONDON: Arabica and robusta coffee futures on ICE edged up on Wednesday but struggled to top the previous day's 10-year peaks as speculators paused for breath, while sugar prices also rose.

Coffee

March arabica coffee was 1.2% higher at $2.4605 per lb at 1242 GMT, having closed down 2.6% on Tuesday after hitting $2.5235, the highest since 2011.

March robusta coffee rose 0.6% to $2,283 a tonne, having closed down 1.8% on Tuesday after hitting $2,334, also the highest since 2011.

Dealers said speculators are cutting back their long positions in arabica, while the relentless fall in ICE stocks has paused, for now.

Still, arabica remains supported by expectations output in top producer Brazil will slide this season and next following adverse weather this year.

There is little supply outside Brazil to fill in the gap. Output in Central America, which produces some 15% of the world's arabica, is expected to fall 3% this season amid a resurgence of the 'Roya' coffee leaf rust disease.

Rains, meanwhile, have disrupted the harvest in top robusta producer Vietnam.

Arabica, robusta coffee hit fresh 10-year peaks

Sugar

March raw sugar rose 0.2% to 19.51 cents per lb.

Dealers said the market continues to take its cue from oil and equities. They added there is no production threat at the moment so sugar will struggle to break above 19.50-20 cents.

World shares were set for their biggest two-day jump since November last year as investors grew less concerned about the Omicron coronavirus variant.

March white sugar was little changed at $505.70 a tonne.

Cocoa

March New York cocoa fell 0.6% to $2,471 a tonne.

March London cocoa fell 0.6% to 1,689 pounds per tonne?.

Dealers noted December cocoa is trading at a wide discount to March, indicating ample nearby supply.