LONDON: Arabica coffee futures on ICE rose sharply on Monday, boosted partly by forecasts for a cold snap in top producer Brazil, while sugar and cocoa prices also rose.
COFFEE
July arabica coffee rose 4.9% to $2.2440 per lb by 1434 GMT.
Dealers noted prices were boosted by the threat of frost in some coffee growing areas of top producer Brazil this week.
July robusta coffee rose 2.45% to $2,090 a tonne.
Uganda’s coffee exports declined 24% year-on-year in April as a drought in parts of the country cut yields, the state-run sector regulator Uganda Coffee Development Authority (UCDA) said on Monday.
SUGAR
July raw sugar rose 2.35% to 19.62 cents per lb after peaking at 19.70 cents - the highest level since April 22.
Dealers said prices were supported by gains in grain prices following India’s decision to ban exports of wheat. An increase in the cost of grains can boost prices of ethanol and lead to more use of cane to produce the biofuel.
A deteriorating outlook for cane production in the key Centre-South region of Brazil has also been supportive.
“Estimates of CS (Centre-South) Brazil cane tonnage are coming down slightly, as it becomes clear that the quality of this year’s cane varies widely,” broker Marex said in a note, adding some regions were suffering acutely following drought, frost and fires last year.
August white sugar rose 1.6% to $544.30 a tonne.
COCOA
July New York cocoa rose 1.7% to $2,510 a tonne.
Heavy rain in most of Ivory Coast’s cocoa-growing regions last week will spur growth of the April-to-September mid-crop but could cause mouldy beans, farmers said on Monday.
July London cocoa rose 1.2% to 1,801 pounds a tonne.
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