SOFTS-Arabica coffee futures edge up, raw sugar rises
- December arabica coffee was up 0.4 cents, or 0.3pc, at $1.2145 per lb by 1326 GMT, edging up towards a 4-1/2 month high of $1.2890 set on Aug. 5.
LONDON: Arabica coffee futures on ICE edged up on Wednesday, boosted partly by declining exchange stocks, while raw sugar prices also advanced but cocoa eased.
COFFEE
December arabica coffee was up 0.4 cents, or 0.3pc, at $1.2145 per lb by 1326 GMT, edging up towards a 4-1/2 month high of $1.2890 set on Aug. 5.
Dealers said the market was underpinned by a decline in certified exchange stocks, which totalled 1.36 million bags as of Aug. 18, sharply down from 2.36 million bags at the same stage last year.
Honduras is by far the largest source of exchange stocks.
ICE certified stocks are washed arabica coffee, typically resulting in higher-quality beans than unwashed. The majority of Brazil's arabica coffee is unwashed.
"The contrast between overwhelming production in Brazil and the decline in washed-coffee production outside of Brazil has never been sharper, and it allows for some price hikes, even though Brazil just harvested the largest crop ever," Rabobank said in a report.
November robusta coffee rose $7, or 0.5pc, to $1,403 a tonne.
SUGAR
October raw sugar was up 0.12 cents, or 0.9pc, at 13.01 cents per lb.
Dealers said funds had been extending a large net long position as crop problems in Thailand, Russia and the European Union help to lessen the impact of rising production in Brazil.
"The deficit in these production areas will indeed erase a good part of the Brazilian surplus," analyst Agritel said. October white sugar rose $3.40, or 0.9pc, to $376.80 per tonne.
COCOA
December New York cocoa fell $3, or 0.1pc, to $2,442 a tonne.
December London cocoa was 11 pounds, or 0.7pc, lower at 1,662 pounds per tonne?.
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