LONDON: Arabica coffee futures on ICE rose on Thursday to the highest level in almost a decade boosted by tightening supplies in many consuming countries following shipping delays, while raw sugar climbed to a 4-1/2 year peak.
March arabica coffee rose 0.8% to $2.3655 per lb by 1510 GMT after peaking at $2.3835, the highest level for the benchmark second position since January 2012.
Dealers said the market continued to derive support from delays to shipments from South America and high freight costs which has helped to increase demand for exchange stocks.
The market’s recent strong performance has also helped to fuel technically-driven buying.
January robusta coffee fell 0.75% to $2,239 a tonne.
Trading activities in major robusta producer Vietnam remained tepid at a time when erratic weather slowed down the bean ripening process in the country’s Central Highlands.
March raw sugar was 0.2% higher at 20.47 cents per lb after peaking at 20.69 cents, the highest level for the front month since February 2017.
Dealers noted tightening supplies, with a second successive global deficit widely forecast for the current 2021/22 season, continued to support prices while supply chain issues linked partly to the COVID-19 pandemic had increased the appetite to hold stocks.
The International Sugar Organization, in a quarterly update, said the pandemic had changed perceptions around holding stocks of the sweetener.
“The desirability of holding stocks is proving strong and will likely be a key driver for the remainder of the current 2021/22 cycle,” the ISO said.
March white sugar fell 0.04% to $524.50 a tonne.
March London cocoa rose 1.05% to 1,726 pounds a tonne.
March New York cocoa was up 1.1% at $2,596 a tonne.