Robusta coffee hits 4-1/2 year high, arabica also up
- March London cocoa fell 0.7% to 1,764 pounds a tonne
- March raw sugar rose 0.6% to 19.50 cents per lb
LONDON: Robusta coffee futures on ICE rose to a 4-1/2 year peak on Tuesday, boosted by ongoing disruption in the flow of coffee from Vietnam, while arabica coffee prices were also higher.
Coffee
January robusta coffee rose 1.7% to $2,233 a tonne by 1331 GMT after rising to a peak of $2,235 - the highest level for the benchmark second position since February 2017.
Dealers said the market was supported by a major shortage of shipping containers in Vietnam that was curbing exports. Renewed outbreaks of COVID-19 in the country, the world's top robusta producer, which could hinder cherry picking when the harvest gets underway next month, also boosted prices.
Dealers said the disruption to the flow of coffee from Vietnam was creating short-term supply tightness in the robusta market, with front month November commanding a premium of about $100 to January.
December arabica coffee rose 1.2% to $2.05 per lb.
Arabica coffee hits two-week low as Brazilian real slumps
Sugar
March raw sugar rose 0.6% to 19.50 cents per lb.
Dealers said the market derived some support from data showing sugar production in the key Centre-South region of Brazil during the first half of October was down a larger-than-expected 56% versus the same period a year earlier.
A rise of 7% in gasoline prices in Brazil, effective Tuesday, also helped to boost the market, increasing the incentive to use cane in Brazil to produce biofuel ethanol rather than sugar.
December white sugar rose 0.3% to $506.70 a tonne.
Cocoa
March London cocoa fell 0.7% to 1,764 pounds a tonne.
Dealers said an improving outlook for the main crop in top grower Ivory Coast has helped put the market on the defensive.
December New York cocoa fell 0.9% to $2,593 a tonne.
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