- July arabica coffee rose by 7.3 cents, or 4.7%, to $1.6265 per lb.
- July raw sugar rose by 0.49 cent, or 2.9%, to 17.61 cents per lb after setting a two-week high of 17.69 cents.
LONDON: Arabica coffee futures on ICE climbed to a 4-1/2 year high on Friday with the crop outlook in Brazil dented by dry weather while raw sugar prices also rose.
July arabica coffee rose by 7.3 cents, or 4.7%, to $1.6265 per lb by 1058 GMT after setting a 4-1/2-year high of $1.6315 earlier in the session.
Dealers said the market was supported by the prospect of a significant drop in production in Brazil this year, due to drier-than-normal weather and an off-year in the country's biennial crop cycle.
Dry conditions could also lead reduce the size of next year's crop in the world's top producer.
The Brazilian government has issued a Water Emergency Alert for the period from June to September in the region that includes the states of Minas Gerais, Goias, Mato Grosso do Sul, Sao Paulo and Parana. Brazil's National Meteorology System (SNM) expects low volume of precipitation all along that period of time for that large part of the country.
July robusta coffee rose by $65, or 4.3%, to $1,582 a tonne.
July raw sugar rose by 0.49 cent, or 2.9%, to 17.61 cents per lb after setting a two-week high of 17.69 cents.
Dealers said the front month's discount to October was narrowing, possibly reflecting interest from the trade in taking delivery when the July contract expires at the end of this month.
The prospect of a small global surplus in the 2021/22 season should, however, keep a lid on prices.
August white sugar rose by $9.10, or 2%, to $466.60 a tonne.
September London cocoa fell by 1 pound, or 0.1%, to 1,630 pounds a tonne.
Dealers said supplies remained ample with the market awaiting the release of an updated 2020/21 balance forecast by the International Cocoa Organization, expected to be issued before the end of this month.
The ICCO, in its last quarterly update in late February, forecast a surplus of 102,000 tonnes for 2020/21.
September New York cocoa fell by $14, or 0.6%, to $2,454 a tonne.