NEW YORK: ICE coffee futures in New York and London rallied on Tuesday, driven by worries over tightening supplies of exchange-deliverable arabica beans and fears that a coronavirus outbreak in Vietnam could hit robusta output.
September arabica coffee rose 2.38 cents, or 2.3%, to $1.2065 per lb? by 1457 GMT, having hit a 3-1/2 month high of $1.2085. Honduran coffee exports fell 55.5% year on year in July, data showed, as production fell because of low market prices as well as drought conditions.
Honduras, which accounts for three quarters of ICE certified coffee stocks, is expected to record a 4.3% drop in coffee exports this season. Commerzbank said that falling exchange stocks were helping to drive arabica prices higher.
Latest exchange data showed that ICE coffee stocks fell to 1.588 million 60kg bags, the lowest level since August 2017. Coffee company JDE Peet's said it would return to sales growth in the second half, having already seen signs in June that its out-of-home markets are starting to recover from lockdowns.
September robusta coffee rose $46, or 3.4%, to $1,397 a tonne, having hit a 7-1/2 month peak of $1,406. Robusta is gaining support from a coronavirus outbreak in top producer Vietnam, which has led authorities to impose lockdowns in parts of the coffee-growing region.
October raw sugar fell 0.03 cents, or 0.2%, to 12.70 cents per lb, having hit its highest since March 10 on Monday. Dealers said abundant rains this week in Thailand, the world's second-largest sugar exporter, had helped ease concerns about falling output.
October white sugar fell by $1.80, or 0.5%, to $373.40 a tonne. December London cocoa fell 6 pounds, or 0.4%, to 1,673 pounds a tonne, having touched its highest since June 30 at 1,686 pounds. September New York cocoa fell $11, or 0.5%, to $2,458 a tonne, having hit its highest since June 25 at $2,485.
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