SOFTS-Arabica coffee edges higher, London cocoa eases

LONDON: Arabica coffee futures on ICE were slightly higher on Tuesday, edging further away from a more than two-month low set last week while London cocoa prices eased on a stronger pound.

COFFEE

December arabica coffee rose by 0.4 cents, or 0.4pc, to $1.076 per lb by 0948 GMT. The front month set a more than two-month low of $1.0490 on Friday.

Dealers noted exchange stocks were continuing to decline although a drawdown in coffee from the usual origins such as Honduras had been partially offset by the grading of some supplies from Brazil for potential delivery to the exchange.

"So far the pass rate for Brazil has been very low at around 40pc. This will probably give some trade houses pause going forward," Cardiff Coffee Trading said in a report.

November robusta coffee fell $4, or 0.3pc, to $1,264 a tonne.

COCOA

December London cocoa ?? fell 10 pounds, or 0.6pc, to 1,715 pounds a tonne weighed down partly by a stronger pound versus the dollar.

December New York cocoa ??was up $11, or 0.4pc, at $2,469 a tonne.

Mainly above-average rains interspersed with sun last week in most of Ivory Coast's cocoa regions should improve the chances of a larger, higher-quality October-to-March main crop, farmers said on Monday.

SUGAR

March raw sugar ?was down 0.01 cents, or 0.1pc, at 13.60 cents per lb.

Dealers said the market was underpinned by concerns about dry weather in top exporter Brazil but was struggling to overcome resistance around its recent high of 13.77 cents.

The front month peaked at 13.75 cents on Monday before falling back.

Fund buying has helped fuel the recent run-up.

"We are ... likely moving nearer to a point where investor capacity is exhausted. Who is the buyer after that is unclear," Commonwealth Bank of Australia analyst Tobin Gorey said in a market update.

December white sugar dipped by $0.30, or 0.1pc, to $372.90 a tonne.