- March New York cocoa was up 0.4% at $2,524 a tonne
- March arabica coffee rose 1.2% to $2.0910 per lb
LONDON: Arabica coffee futures on ICE were higher on Thursday as the focus remained on the outlook for next year's crop in top producer Brazil, while cocoa and sugar prices also rose.
March arabica coffee rose 1.2% to $2.0910 per lb by 1137 GMT.
Dealers noted that 2022 was on-year in the Brazilian biennial crop cycle which typically leads to significantly higher production.
Frost and drought may, however, lead to a crop far below the last on-year crop in 2020.
"There are estimates suggesting that as much as 12 million bags of coffee could be lost in Brazil next season due to a combination of frost and drought. However more recently, growing regions have seen above average rainfall. If this trend continues over the rainy season, it could help reduce some of the expected losses," ING said in note.
January robusta coffee rose 0.8% to $2,223 a tonne.
The harvest in top robusta producer Vietnam is expected to commence by late December, a month later than usual due to prolonged rains that hampered cherry picking and hurt bean quality, as well as new COVID-19 clusters.
March New York cocoa was up 0.4% at $2,524 a tonne.
Dealers said a pick-up in demand should contribute to a more balanced market in the current 2021/22 season after a significant global surplus in 2020/21.
"The continued reopening of economies following the peak COVID-19 related lockdowns last year has been constructive for the demand picture," ING said in a note.
March London cocoa rose 0.8% to 1,718 pounds a tonne. SUGAR
March raw sugar rose 0.9% to 19.77 cents per lb.
Dealers said the market's recent failure to hold above 20 cents had prompted some profit-taking on Wednesday but there appeared to be solid support around 19.50 cents.
December white sugar, which expires next Monday, rose 0.8% to $511.10 a tonne.