LONDON: Robusta coffee futures edged higher on Friday but remained well below the prior session’s three-month peak, with the market’s recent strong rally appearing to be losing steam.
Coffee
Robusta coffee futures rose 0.3% to $4,823 a metric ton by 1146 GMT, hovering just below the prior session’s three-month high of $4,986.
The market was on track for a weekly gain of 3.7%.
Prices have been supported by speculative buying against the backdrop of a slow but steady decline in exchange stocks as U.S. roasters scramble to secure supplies after the U.S. government imposed a 50% tariff on imports from Brazil.
“While the rally in robusta and arabica prices may have slowed, further price increases cannot be ruled out in the near term. Speculative activity remains influential in a low stock, low-liquidity environment,” Rabobank said in a note.
Arabica coffee futures lost 0.1% to $3.77 per lb, after setting a 3-1/2 month high of $3.9130 on Thursday.
Robusta coffee turns lower after touching three-month high
Sugar
Raw sugar lost 0.1% to 16.46 cents per lb.
Dealers were awaiting the release later on Friday of data on sugar and cane production in Center-South Brazil covering the first half of August.
Brazil’s Sao Paulo state, which produces about half of thecountry’s sugarcane, is expected to face intense heat and dry weather next week in key growing regions, potentially further reducing yields of the crop, EarthDaily said on Thursday.
White sugar was unchanged at $493.20 a ton.
Cocoa
London cocoa rose 0.2% to 5,357 pounds a ton.
Dealers said the expiry of London September 25 options on Friday had provided a short-term focus.
New York cocoa was down 0.9% at $7,745 a ton.
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