- September arabica coffee edged up 0.1% to $1.7505 per lb
- December New York cocoa rose 0.1% to $2,479 a tonne
LONDON: Arabica coffee futures on ICE steadied on Wednesday as the market consolidated following last week's almost seven-year high above $2 per lb, with recent frost damage in Brazil somewhat factored in and concerns mounting over demand.
September arabica coffee edged up 0.1% to $1.7505 per lb at 1303 GMT.
Coffee prices are consolidating after the huge volatility that followed last month's frosts in top producer Brazil, which hit an estimated 11% of arabica growing areas.
Rabobank said it expects September arabica futures to trade between $1.52 and $1.88, held back by poor demand as many service industries move towards working from home on a more permanent basis, hurting out-of-home coffee consumption.
Dealers said a current lack of rain and warming temperatures in Brazil's arabica-growing areas could prove stressful for frost-damaged trees, keeping the production outlook for 2022 under pressure.
Coffee roaster JDE Peet's reported higher-than-expected operating profit for the first half of 2021, as growth in sales of coffee for home consumption offset an uneven restart for coffee shops due to the coronavirus pandemic.
Brazil's coffee producers suffering losses from frosts could receive 1 billion reais ($192 million) in additional financing credits from the Coffee Economy Defense Fund.
September robusta coffee edged up 0.1% to $1,774 a tonne.
October raw sugar rose 0.1% to 18 cents per lb, still some way off last week's five-month high of 18.81 cents.
Analysts on Tuesday cut projections for Brazil's sugar production this season following frosts and drought, with trader Wilmar expecting as little as 28 million tonnes and warning of lower output next season.
Soaring freight rates caused global sugar consumers to pause their buying in July, leading to a temporary glut in Brazil that drove down price differentials, said Geovani Consul, chief executive of BP Bunge Bioenergia, a sugar and ethanol venture owned by BP and Bunge.
October white sugar slipped 0.1% to $449 a tonne.
December New York cocoa rose 0.1% to $2,479 a tonne.
December London cocoa slipped 0.2% to 1,693 pounds per tonne.