LONDON: Arabica coffee futures on ICE rose on Monday, boosted by the recent decline in exchange stocks, while cocoa and sugar prices were also higher.
Coffee
Arabica coffee rose 2.2% to $3.6690 per lb by 1030 GMT.
Dealers said the market is also awaiting a planned meeting this week between U.S. President Donald Trump and Brazilian President Luiz Inacio Lula da Silva to see if a 50% U.S. tariff on Brazilian coffee could be revised.
Brazil coffee exports to the United States will decline further if U.S. tariffs remain in place, said Marcio Ferreira, the head of exporter group Cecafe, adding the industry was pleased by warming relations between the leaders of the two countries.
Robusta coffee was up 1.2% at $4,234 a metric ton.
Arabica coffee prices rise, while cocoa consolidates
Cocoa
London cocoa gained 0.6% to 4,876 pounds a ton after finding support at Friday’s two-month low of 4,838 pounds.
Dealers said the market may be set for a period of consolidation ahead of third quarter grind data, which should provide an indication of whether demand is continuing to weaken.
Grind reports for Europe and North America are both scheduled to be issued on October 16.
Dealers noted speculators had switched to a net short in London cocoa, as of September 23.
New York cocoa was up 1.5% at $7,040 a ton.
Sugar
Raw sugar rose 0.6% to 15.97 cents per lb.
Dealers were awaiting the release in the next few days of data on cane and sugar production in the Centre-South of Brazil covering the first half of September.
Sugar production in the key region is likely to have risen 15% year on year to 3.6 million tons, according to a survey of analysts published by S&P Global Commodity Insights.
White sugar gained 0.7% at $464.10 a ton.
Comments
Comments are closed for this article.