Arabica coffee hits more than 10-year peak as exchange stocks dwindle

LONDON: Arabica coffee prices on ICE hit their highest in more than ten years on Wednesday, boosted by supply concerns, with exchange-certified stocks languishing at their lowest level in more than 20 years.

COFFEE

May arabica coffee was up 2.7% to $2.5615 per lb at 1517 GMT, having hit its highest since September 2011 at $2.5665.

Dealers said they were continuing to monitor the drawdown in exchange stocks. They added there was very little trade happening in top producer Brazil, with arabica roasters buying hand to mouth amid soaring prices.

Certified ICE arabica stocks fell to 20-year lows of 1.06 million bags on Tuesday, down sharply from 1.54 million bags seen at the end of 2021.

May robusta coffee rose 1.1% to $2,259 a tonne, deriving support from the rally in arabica.

Traders are planning to deliver thousands of tonnes of robusta coffee from Asia to the ICE exchange in Europe for the first time in more than three years - a move likely to take the heat out of robusta prices.

SUGAR

March raw sugar rose 2.6% to 18.55 cents per lb amid upbeat sentiment in wider financial markets.

Egypt aims to increase its sugar production by about 500,000 tonnes annually, its cabinet said in a statement on Wednesday.

France’s Tereos, the world’s second largest sugar maker, expects sugar prices to remain high as it sees the world market remaining in deficit for a third year in a row while Europe faces supply tensions.

March white sugar, which expires on Friday, rose 1.3% to $505.90 a tonne, while the May contract gained 1.9% to $492.20 a tonne.

COCOA

May New York cocoa rose 2.9% to $2,804 a tonne - its highest since last October.

May London cocoa rose 2.1% to 1,845 pounds per - also its highest since last October.