Robusta coffee sets four-year high while sugar slips
- December New York cocoa lost $39, or 1.5%, to $2,558 a tonne
- October raw sugar fell by 0.29 cents, or 1.4%, to 19.93 cents per lb
- November robusta coffee rose $16, or 0.8%, to $2,034 a tonne
LONDON: Robusta coffee futures on ICE climbed to a four-year high on Tuesday, with demand boosted by the high cost of arabica beans, while sugar and cocoa prices fell.
COFFEE
November robusta coffee rose $16, or 0.8%, to $2,034 a tonne by 1341 GMT after hitting the highest since September 2017 at $2,070.
Dealers said the market was supported by a pick-up in demand for robusta beans linked to the recent surge in prices for arabica coffee after frost damage to Brazil's crop.
The high current cost of shipping coffee from top robusta producer Vietnam has also added to demand for exchange stocks.
December arabica coffee was down 2.95 cents, or 1.5%, at $1.9695 per lb after touching a one-month high of $2.0155.
The recent advance could soon peter out, with prices likely to remain below a multi-year high of $2.1785 on July 26, Commerzbank said in a technical note.
Robusta coffee sets 4-year high, arabica also up
SUGAR
October raw sugar fell by 0.29 cents, or 1.4%, to 19.93 cents per lb.
Dealers said weak demand was helping to keep a lid on prices with October trading at a widening discount of about 0.7 cents to March 2022.
The market remained underpinned, however, by a diminished outlook for production in Centre-South Brazil after drought and recent frosts.
"Supply is very tight after a six to seven million tonne estimated decline in production in CS Brazil, but demand seems to be falling almost as fast as supply," Marex analyst Robin Shaw said in a note.
October white sugar fell by $1.80, or 0.4%, to $485.60 a tonne.
COCOA
December New York cocoa lost $39, or 1.5%, to $2,558 a tonne.
December London cocoa was down 22 pounds, or 1.2%, at 1,759 pounds a tonne.
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