Robusta coffee hits highest in nearly 6 months; arabica surges
- Arabica coffee futures rose more than 6% to a two-month top, boosted by sharp gains in the Brazilian currency.
- October raw sugar settled up 0.19 cent, or 1.6%, at 11.86 cents per lb.
NEW YORK/LONDON: Robusta coffee prices on ICE hit their highest levels in nearly six months on Wednesday, driven by talk of the economic downturn's prompting a shift in consumption toward cheaper, instant coffee blends.
Arabica coffee futures rose more than 6% to a two-month top, boosted by sharp gains in the Brazilian currency.
COFFEE
September robusta coffee settled up $40, or 3.0%, at $1,357 a tonne, the highest price since late January.
"I'm hearing demand is quite strong; there's been a switch in consumption from arabica to robusta. Home consumption is more robusta" intensive, one dealer said.
September arabica coffee settled up 6.6 cents, or 6.5%, at $1.0835 per lb, a two-month top.
Dealers said arabica was rising in tandem with robusta and also due to sharp gains for the Brazilian currency for the last two days.
"At the current level of the Brazilian currency, farmers have no interest to sell, since they would be making less reais per bag," said a Brazil-based broker.
SUGAR
October raw sugar settled up 0.19 cent, or 1.6%, at 11.86 cents per lb.
Dealers said sugar has detached slightly from trends in the wider markets and looks poised to stay range-bound between 11.50 and 12.00 cents until there is fresh news on fundamentals.
An eventual impact from the Brazilian currency's strengthening was less likely, they said, because most of the pricing from Brazil has already been done.
October white sugar settled up $3.70, or 1.0%, at $359.00 a tonne.
COCOA
December London cocoa settled up 6 pounds, or 0.4%, to 1,557 pounds per tonne.
Cocoa is consolidating after hitting its lowest level in nearly two years last week, though concern remains over a large surplus next season.
Marcel Amon-Tanoh, a previous ally of President Alassane Ouattara, declared on Wednesday that he would run in Ivory Coast's presidential election in October, breaking with the ruling party.
The Oct. 31 election is viewed as a key test of stability for Ivory Coast, the world's top cocoa producer.
September New York cocoa settled up $29, or 1.3%, to $2,205 a tonne.
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