LONDON: Arabica coffee futures hit a fresh 7-year peak on Monday amid ongoing supply constraints, while robusta coffee headed back up near last week’s 10-year high.
Sugar and cocoa also rose.
March arabica coffee rose 2.7% to $2.2790 per lb by 1439 GMT, having touched its highest since October 2014 at $2.2795.
Arabica prices are being boosted by logistics delays in top producer Brazil, higher demand expectations, falling arabica stockpiles and potential dry weather next year due to a looming La Nina weather pattern.
“In addition to the shortage of ships, truck drivers (in Brazil) have now also gone out on strike. Shipping delays (out of Brazil) this year have already affected 3.7 million bags (of exports),” said Commerzbank in a note.
January robusta coffee rose 1% to $2,300 a tonne, having touched $2,313 on Friday, the highest since early September 2011.
March raw sugar rose 0.3% to 20.04 cents per lb, having hit its highest in a month on Thursday.
Marex Spectron said sugar has many bullish drivers long term, not least the ethanol parity which it estimates at around 20.60 cents. It added, however, the spectre of Indian selling above 20.50 cents is capping prices for now.
Dealers said the technical picture remains positive but that funds are side-lined at the moment and looking for macro-economic signals to push sugar prices higher.
Algeria will impose a 9% value-added tax on white and raw sugar from early next year to reduce imports and address health issues, Prime Minister Ayman Benabderrahmane said.
December white sugar, which expires later this session, rose 0.5% to $530 a tonne.
March New York cocoa rose 0.8% to $2,545 a tonne.
Cocoa arrivals at ports in top grower Ivory Coast reached 489,000 tonnes between Oct. 1 and Nov. 14, exporters estimated, down 10.9% versus the same period last season.