LONDON: Arabica coffee futures rallied on Tuesday, heading back towards July's 6-1/2 year highs as concerns over tighter supplies prevailed with exchange stocks continuing to head lower. Cocoa also rose meanwhile, but raw sugar fell as signals from wider financial markets were broadly negative.
COFFEE
December arabica coffee rose 3.2% to $2.1070 per lb at 1356 GMT, having earlier hit a high of $2.1235.
Dealers said there was talk that global freight issues have sparked a run on coffee stocks as demand for one of the world's favourite drinks holds firm.
They noted ICE arabica stocks are down 11.5% since the beginning of September.
November robusta coffee rose 1.7% to $2,134 a tonne.
SUGAR
March raw sugar ??fell 0.4% to 20.24 cents??, having touched 20.61 cents on Monday - its highest since late February 2017.
The sell-off in global equities continues on signs soaring energy prices have put a dampener on economic growth, triggering fears over sustained inflation and policy tightening.
Dealers said sugar should remain well supported, citing a growing view that end-users will soon need to replenish stocks and that India selling will only emerge around 21 or even 21.50 cents.
France's farm ministry raised its 2021 sugar beet output estimate to 34 million tonnes from 33.1 million a month ago, up 29.6% on last year but 8.3% below the five-year average.
December white sugar edged down 0.1% to $521.20 a tonne.
COCOA
December New York cocoa rose 0.5% to $2,695 a tonne, having hit a seven-month peak of $2,792 last week.
December London cocoa rose 1% to 1,878 pounds per tonne?.
Ivory Coast's cocoa grind, a measure of demand in the world's second largest processor of the bean, was up 11.1% in September, data showed. World no.2 producer Ghana's cocoa arrivals at ports rose 34.7% between Oct 1, 2020 and Sept. 16, 2021, data showed.
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