LONDON: Robusta coffee futures on ICE were lower on Wednesday, slipping back from the prior session’s 4-1/2 year high, while arabica coffee prices also fell.
COFFEE
January robusta coffee was down 2% to $2,224 a tonne by 1411 GMT, slipping back from a 4-1/2 year peak of $2,278 set on Tuesday.
Dealers said the market was struggling to overcome resistance around the peak of $2,279 set in February 2017 and could fall back further in the short-term.
The market remained underpinned, however, by disruptions to the flow of supplies from top robusta exporter Vietnam linked to a shortage of shipping containers.
December arabica coffee fell 1.7% to $2.0460 per lb.
Dealers noted recent rains in Brazil had improved the outlook for next year’s crop in the world’s top arabica coffee producer.
SUGAR
March raw sugar was up 0.7% to 19.80 cents per lb after peaking at 19.82 cents - the highest level since Oct. 15
The market was supported by a diminished outlook for sugar output in Centre-South Brazil with data issued by cane industry group Unica on Tuesday showing production in the region had fallen more sharply than expected in the first half of October.
“The cumulative impact of extended dryness and multiple frosts were there to see in the form of lower cane crush and lower sugar recoveries. But both crush and recovery were even worse than expected,” Commonwealth Bank of Australia analyst Tobin Gorey said in a note.
December white sugar rose 0.8% to $515.30 a tonne.
COCOA
March London cocoa fell 0.2% to 1,764 pounds a tonne after slipping to a low of 1,746 pounds - the weakest price for the benchmark second position since Sept. 1.
December New York cocoa rose 1% to $2,607 a tonne.
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