LONDON: Robusta coffee futures slipped on Friday after hitting 10-year highs in the previous session, though dealers said the market remains underpinned by supply and export issues in top producer Vietnam. January robusta coffee fell 0.5% to $2,280 a tonne at 1300 GMT, having hit $2,300 in the previous session, the highest since Sept. 2, 2011.
Dealers said despite coronavirus lockdowns having been lifted in Vietnam, supply of labour remains limited, vaccine roll-outs remain slow, and shipping and fertiliser costs remain high. March arabica coffee edged up 0.1% to $2.134 per lb, having hit the highest in a month on Thursday.
Dealers said logistics delays in top producer Brazil and higher demand expectations continue to lower arabica stockpiles in consuming countries. March raw sugar fell 0.6% to 20.01 cents per lb, having hit its highest in a month on Thursday.
Dealers said sugar remains underpinned by India's plans to divert more sugarcane to ethanol production, as well as by concerns over global inflation. Fitch Solutions said sugar prices will remain near current lofty spot levels heading into 2022 thanks to ethanol diversion, weather issues in top producer Brazil and a recovery in global demand.
December white sugar, which expires next Monday, rose 0.6% to $526 a tonne. March New York cocoa fell 1% to $2,512 a tonne. March London cocoa fell 0.8% to 1,705 pounds per tonne.
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