- July arabica coffee was little changed at $1.4590 per lb.
- The Brazilian real hit a 2-1/2 month high versus the dollar on Wednesday, deterring farmers and exporters from selling by lowering returns in local currency terms.
LONDON: Arabica coffee futures on ICE hit their highest in four years on Thursday, supported by tightening supplies in top producer Brazil, signs of improved demand and a stronger Brazilian real. Sugar and cocoa also rose.
July arabica coffee was little changed at $1.4590 per lb at 1115 GMT, having earlier hit its highest since February 2017 at $1.4765.
The Brazilian real hit a 2-1/2 month high versus the dollar on Wednesday, deterring farmers and exporters from selling by lowering returns in local currency terms.
Arabica supplies are tightening as Brazil enters an off-year in its biennial crop cycle. There are signs, meanwhile, that demand is recovering.
Beverage and coffee company Keurig Dr Pepper on Thursday increased its outlook for 2021 net sales growth to 6% and said coffee systems sales in the first quarter rose 17.4%.
July robusta coffee rose 0.2% to $1,470 a tonne, having touched its highest since March 1 at $1,474.
Coffee exports from top robusta producer Vietnam in the first four months of the year are likely to have dropped by 17.6% year on year, data showed.
Vietnamese robusta premiums were steady this week on both thin supply and buying demand while prices narrowed in Indonesia as harvesting began, traders said.
May raw sugar, which expires on Friday, rose 0.6% to 17.40 cents per lb after hitting a two-month peak of 17.98 earlier in the week.
Agricultural commodities trader Wilmar expects higher sugar prices will benefit its sugar milling business, it said as it reported first-quarter net profit up at $450.2 million from $224.1 million a year earlier.
August white sugar rose 0.4% to $464.40 a tonne.
July New York cocoa rose 0.6% to $2,487 a tonne.
Cocoa is underperforming relative to coffee and sugar despite signs of improved demand, with the market expected to show a wide surplus this season.
July London cocoa rose 0.3% to 1,652 pounds per tonne.