SOFTS-Arabica coffee futures surge; raw sugar also climbs

LONDON: Arabica coffee futures rose sharply on Friday, boosted by concerns about dry weather in top producer Brazil, while raw sugar futures also advanced.

Trade in U.S.-based arabica coffee, raw sugar and New York cocoa contracts resumed after a holiday on Thursday.

Trade in robusta coffee, white sugar and London cocoa had remained open.

COFFEE

March arabica coffee was up 5.9 cents, or 5pc at $1.2305 per lb by 1246 GMT.

The benchmark second position rose to a peak of $1.2440 last week, its highest since mid-September.

Dealers said dry weather in southern Brazil remained a key supportive factor, with some crop damage now considered inevitable and plentiful December rain needed to limit losses.

March robusta coffee rose $7, or 0.5pc, to $1,418 a tonne.

The harvest in top robusta producer Vietnam continued to make slow progress and expected heavy weekend rain could lead to further delays.

SUGAR

March raw sugar rose 0.29 cents, or 2pc, to 15.06 cents per lb, recovering ground lost on Wednesday.

The market derived support from the continued lack of export subsidies in India despite lobbying from the sugar sector, effectively keeping much of the country's surplus out of the international market.

Dealers said the lack of Indian exports had tightened nearby supplies, with a widening of March's premium to May.

March white sugar rose $3.40, or 0.8pc, to $407.50 a tonne.

COCOA

March New York cocoa was up $1, or 0.04pc, at $2,725 a tonne.

Dealers said the market remained choppy. A sharp rise to a nine-month high of $2,821 on Tuesday was followed by a major pullback on Wednesday.

Overall fundamentals, however, were seen as bearish, with a significant global surplus expected in the 2020/21 season partly driven by sluggish demand.

March London cocoa fell 16 pounds, or 0.9pc, to 1,844 pounds a tonne.