LONDON: Arabica coffee futures on ICE rose on Wednesday, bucking a falling trend in soft commodities and the wider financial markets, as ICE exchange stockpiles continued to drift towards 22-year lows.
COFFEE
September arabica coffee rose 0.6% to $2.3375 per lb at 1224 GMT.
ICE certified stocks fell on Tuesday to 981,901 bags, nearing their lowest in 22 years, as the industry continues to opt for coffee that is cheaper than similar product in the spot market.
Dealers said further falls in ICE coffee stocks are on the cards until October at the earliest, when the new crop from Honduras is harvested.
Nearer term, they said coffee is gaining support as financial investors start shifting funds out of equities and cryptocurrencies towards commodities due to their perceived store of value.
September robusta coffee slipped 0.1% to $2,099 a tonne.
SUGAR
July raw sugar fell 1.2% to 18.44 cents per lb.
Dealers said sugar is finding demand around the 18.50 level, but added it remains largely at the mercy of sentiment in the wider financial markets, which is negative at present.
World stock markets and oil prices hit the skids on Wednesday as the persistent palpitations about rising interest rates and recessions struck again. The dollar index rose meanwhile. A sugar shortage in the Philippines has worsened as local production missed forecasts and due to a delay in planned imports of up to 200,000 tonnes of the refined sweetener.
August white sugar fell 0.7% to $555.80 a tonne.
COCOA
September New York cocoa fell 0.8% to $2,449 a tonne.
September London cocoa fell 0.5% to 1,756 pounds per tonne.
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