LONDON: Robusta coffee prices on ICE hit their highest in nearly six months on Wednesday, driven by talk of the economic downturn prompting a shift in consumption towards cheaper, instant coffee blends.
September robusta coffee rose $20, or 1.5%, to $1,337 a tonne, having hit its highest since late January at $1,338.
"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 rose 3.6 cents, or 3.4%, to $1.0810 per lb, having hit its highest since mid-May at $1.0855.
Dealers said that arabica was rising in tandem with robusta and fundamentals remain challenging, given plentiful output from Brazil.
October raw sugar edged up 0.04 cents, or 0.3%, to 11.71 cents per lb. In the wider markets, renewed US-Sino tensions hit equities while oil prices slipped in reponse to rising coronavirus cases in the United States.
Dealers said that 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.
October white sugar rose $1.20, or 0.3%, to $356.50 a tonne.
December London cocoa edged up by 1 pound, or 0.1%, to 1,552 pounds a 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 was up $11, or 0.5%, at $2,185 a tonne.
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