LONDON: Arabica coffee futures on ICE hit a 6-1/2 week high on Friday on concerns over the potential for crop-damaging cold weather in parts of top-grower Brazil, while sugar prices steadied.
COFFEE
July arabica coffee was 0.7 cent, or 0.8pc, higher at 94.15 cents per lb at 1045 GMT, having hit 94.45, its highest since April 9.
The contract, which hit 13-1/2 year lows of 86.35 in April, has closed in positive territory in six of the last 10 sessions.
Prices have been buoyed by forecasts by Somar Meteorologia that cold weather in southern Brazil this weekend could result in a frost.
"The long-term picture is still bearish," said a dealer.
He added, however: "The main issue at the moment is most of the negative fundamental news been priced in ... so the market is prone to any bullish story (for now)."
July robusta coffee fell $3, or 0.2pc, to $1,372 a tonne.
The US Department of Agriculture attache in Vietnam sees coffee production at 30.5 million bags in the 2019/20 period, up by about 100,000 bags from the 2018/19 period.
SUGAR
July raw sugar edged up 0.02 cent, or 0.2pc, to 11.59 cents per lb.
Oil rose towards $69 a barrel after two sessions of losses, but remained on track for its biggest weekly drop this year on rising inventories and economic growth woes.
Higher oil prices can encourage cane mills in top-grower Brazil to produce more ethanol and less sugar.
Global sugar output is set to increase 1pc in 2019/20 from the previous period, as production in Brazil and the European Union more than outweigh the decline in India, the US Department of Agriculture said.
"It does beg the question as to whether other analysts are being too negative with their deficit (forecasts)," said a dealer.
August white sugar was up $0.3, or 0.1pc, at $322.40 a tonne.
COCOA
July London cocoa slipped 3 pounds, or 0.2pc, to 1,770 pounds a tonne, under pressure from a weak pound.
Nestle remains committed to confectionery despite unloading its US chocolate operations during a review of its operations, the food giant said on Friday.
July New York cocoa was up $5, or 0.2 percent, at $2,432 a tonne.
The possibility of reduced output from second-largest cocoa producer Ghana due to crop disease was underpinning prices.
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