LONDON: Arabica coffee futures on ICE rose on Tuesday, boosted partly by the slow pace of producer selling in both Brazil and Colombia, while robusta prices were also higher as rains in Vietnam led to concerns about the quality of the harvest.
Coffee
March arabica coffee rose 1.7% to $1.6540 per lb by 1548 GMT.
Dealers said a strengthening in Brazil’s real against the dollar on Tuesday could further discourage producer selling in the world’s top grower by lowering dollar-denominated prices in local currency terms.
A continued rise in exchange stocks, however, was expected to keep a lid on prices.
ICE certified coffee stocks stood at 637,360 bags on Dec. 5, well above a 23-year low of 382,695 bags set on Nov. 3. There were 407,935 bags pending grading.
Colombia produced 1.06 million 60-kg bags of washed arabica coffee in November, the national coffee federation said on Monday, down 6% from the same month last year because of heavy rain.
January robusta coffee rose 1.4% to $1,925 a tonne.
Dealers said the harvest in top robusta producer Vietnam was now around 60% complete with some quality concerns following recent rains.
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Sugar
March raw sugar rose 0.1% to 19.57 cents per lb.
Dealers noted recent rains in Centre-South Brazil had disrupted the cane harvest while there had also been a slow start to the harvest in Thailand.
March white sugar fell 0.35% to $537.20 a tonne.
French sugar group Tereos reported strong first-half results on Tuesday, including a net profit and a sharp rise in earnings, as high sugar and ethanol prices helped offset an increase in production costs.
Cocoa
March New York cocoa rose 0.3% to $2,487 a tonne.
March London cocoa rose 0.1% to 1,951 pounds a tonne.
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