Arabica coffee hits three month high, cocoa hits 1-month top
- September arabica coffee rose 1.25 cents, or 1.1%, to $1.1385 per lb, having hit its highest since late-April at $1.1420.
NEW YORK/LONDON: Arabica coffee prices on ICE hit three month highs on Wednesday as the Brazilian real strengthened and concerns grew over prospects for central American output, while cocoa prices hit a one month top.
COFFEE
September arabica coffee rose 1.25 cents, or 1.1%, to $1.1385 per lb, having hit its highest since late-April at $1.1420.
Arabica is benefiting from a strengthening Brazilian real , which deters exporters from selling dollar-priced coffee by lowering their real-based returns, and as concerns grow that lockdowns and low prices could hurt central American output.
- Starbucks business is "steadily recovering" worldwide as most of its coffee stores have reopened, the company said, after reporting a 40% sales decline in the quarter ended June 28.
September robusta coffee rose $17, or 1.3%, to$1,367 a tonne.
Domestic coffee prices in Vietnam, the world's top robusta producer, look set to rise slightly following new coronavirus cases in the country's major coffee-growing region.
Vietnam's coffee exports in the first seven months of the year are expected to drop 1.4% from a year earlier to 1.06 million tonnes, government data showed.
COCOA
December London cocoa rose 22 pounds, or 1.4%, to 1,604 pounds per tonne? by 1228 GMT, having hit a one month top of 1,607.
Cocoa is consolidating after hitting a near two year low in mid-July, though its fundamentals remain weak.
Rabobank said it expects the North America, Asia and Europe third quarter cocoa grind, a measure of demand, to fall between 4.5% and 5% as economies struggle to fully reopen following coronavirus lockdowns.
It expects demand to recover slowly next year, growing at just 1.6% as second waves of the virus are expected, while production will likely increase between 2% and 3% amid benign weather conditions.
- September New York cocoa rose $38, or 1.7%, to $2,329 a tonne, having hit its highest in a month at $2,341.
SUGAR
October raw sugar was flat at 12.01 cents per lb, after peaking at 12.27 cents on Tuesday, the highest since July 8.
October white sugar ??rose $2.20, or 0.6%, at $365.10 a tonne.
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