LONDON: Robusta coffee futures on ICE climbed to a two-month peak on Friday, boosted by concerns about supply tightness later this year, while raw sugar also rose but cocoa prices fell.
COFFEE
September robusta coffee was up $20, or 0.95 percent, at $2,125 a tonne at 1115 GMT after climbing to a two-month high of $2,144.
Dealers noted the market was supported by the prospect of tightening supplies ahead of the Vietnamese harvest which has led to a widening in September's premium to November during the last few sessions.
"We are looking at a bit of tightness towards the end of the year and that is reflected in the structure and that is where the push higher has come from," one dealer said.
Dealers said the strength of the robusta market had led to a decline in the arabica premium which was around 32 cents per lb on Friday, on a September/September basis, down from nearly 50 cents in early May.
"The arbitrage (arabica premium) is very cheap so I am quite friendly to New York (arabica)," the dealer added.
September arabica coffee rose 0.60 cents, or 0.47 percent, to $1.2865 per lb.
COCOA
Cocoa futures were lower but had regained some ground after a sharp fall earlier in the session.
September New York cocoa was down $33 or 1.59 percent at $2,036 a tonne.
The market opened higher but suddenly turned lower and the decline rapidly gathered pace as sell-stops were triggered, taking September down to a low of $2,014.
"The market had a two-minute spell of stops being activated and that caused the carnage. Quite a few technical points were broken on the downside," one dealer said.
"You need a break above $2,100 and close (above $2,100) to regain confidence," the dealer added.
September London cocoa was down 25 pounds, or 1.53 percent, at 1,613 pounds a tonne.
SUGAR
July raw sugar was up 0.09 cents, or 0.67 percent, at 13.56 cents per lb, edging away from a 16-month low of 13.36 cents hit on Wednesday.
Dealers said the market was supported partly by a modest bounce in the crude oil market.
August white sugar rose $2.30, or 0.58 percent, to $401.60 a tonne.
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