Arabica coffee hits highest in more than 2 weeks; sugar, cocoa fall

LONDON: Arabica coffee futures on ICE hit their highest in more than two weeks amid ongoing supply worries, while sugar and cocoa fell as risk off sentiment returned to the broader financial markets. .

Coffee

December arabica coffee rose 1.1% to $1.9560 per lb at 1208 GMT, having hit its highest since early September at $1.9720.

Dealers said arabica continued to gain support from weak supply prospects from top producer Brazil following adverse weather, though they added much needed rains are expected from the weekend onwards in Brazil's coffee growing regions.

November robusta coffee edged up 0.1% to $2,149 a tonne, after setting a four-year high of $2,180 on Wednesday.

Dealers said supply remains limited in top robusta producer Vietnam, with very little internal trade happening.

Robusta coffee climbs to four-year high, sugar slips

Sugar

October raw sugar, which expires on Sept. 30, fell 1.6% to 19.18 cents per lb.

Dealers said the market could move higher near term, with production continuing to disappoint in top producer Brazil. They also cited talk that exports from India, a key producer, are tailing off as the internal market rallies.

December white sugar fell 1.3% to $506.90 a tonne.

Pakistan has issued a new international tender to purchase 50,000 tonnes of white sugar after making no purchase in its previous tender for 200,000 tonnes, European traders said.

Cocoa

December New York cocoa fell 1% to $2,588 a tonne.

Cocoa production in the world's top grower Ivory Coast is expected to slump by up to 11% year on year in the 2021/2022 season that starts on Oct. 1, the cocoa sector regulator said.

December London cocoa fell 1.1% to 1,793 pounds per tonne.