Arabica coffee recovers but gains capped for now

LONDON: Arabica coffee futures on ICE rose on Monday, reversing most of Friday's losses but remaining far off a 10-year peak set earlier last week.

Coffee

March arabica coffee rose 2.1% to $2.3750 per lb by 1312 GMT. It hit a 10-year high of $2.5235 last Tuesday.

Stocks of arabica in ICE exchange warehouses, previously a major source of concern for the market, have stopped their relentless decline for now.

ICE arabica coffee speculators cut their net long position by 911 contracts to 46,661 in the week to Dec. 7, data showed.

Makers of Irish whiskey, Belgian chocolate and European coffee brands are scrambling to comply with new Chinese food and beverage regulations, with many fearful their goods will be unable to enter the giant market as a Jan. 1 deadline looms.

March robusta coffee rose 0.6% to $2,305 a tonne, after also setting a 10-year high of $2,334 last Tuesday.

Arabica coffee prices slip, cocoa also weakens

Sugar

March raw sugar was flat at 19.71 cents per lb.

ICE sugar speculators cut their net long position by 13,169 contracts to 97,930 in the week to Dec. 7.

Dealers said sugar is beholden to sentiment in the wider financial markets and will continue to consolidate near term. They added, however, a move above 20 cents is more likely than a break below 19.50 given forecasts for tighter supplies.

March white sugar slipped 0.1% to $510.90 a tonne.

Cocoa

March New York cocoa rose 0.5% to $2,479 a tonne.

March London cocoa rose 0.3% to 1,676 pounds a tonne.

Cocoa arrivals at ports in top grower Ivory Coast reached 824,000 tonnes by Dec. 12 since the season start on Oct. 1, exporters estimated, down 10.4% versus the same period last season.

World no. 2 cocoa producer Ghana's cocoa arrivals stood at 132,000 tonnes by Nov. 25 since the season start on Oct. 1, down 54.5% from the same period the previous season, official figures showed.

ICE cocoa speculators trimmed their net short position by 368 contracts to 27,180 in the week to Dec. 7.