LONDON: Coffee futures on ICE rose on Tuesday while sugar prices also edged higher as the currency of Brazil, the top exporter of both commodities, regained some ground after its recent slump. A stronger Brazilian real deters farmers and exporters from selling dollar-denominated arabica coffee by lowering returns in local currency terms.
COFFEE
March arabica coffee rose 0.6% to $2.3815 per lb by 1511 GMT. Dealers said the outlook for next year’s crop in Brazil remained the key market focus after drought and frost this year damaged many trees and dented future production prospects.
March robusta coffee rose 0.3% to $2,293 a tonne as the market continued to be supported by lower exports from top robusta producer Vietnam. For the first 11 months of 2021, Vietnam exported 1.4 million tonnes of coffee, down 2.3% from a year earlier, Vietnam Customs said in a statement.
SUGAR
March raw sugar rose 0.3% to 19.70 cents per lb. The upside continued to be capped by the prospect of a pick-up in exports from India if prices rally significantly. Dealers said there remained sufficient supplies, though there could be a small global deficit in the 2021/22 season.
“A likely minor (global sugar) deficit in season 2021 is not a major issue in the context of comfortable inventory,” Commonwealth Bank of Australia analyst Tobin Gorey said in a quarterly update. March white sugar rose 0.3% to $511.50 a tonne.
COCOA
March London cocoa fell 0.4% to 1,699 pounds a tonne. March New York cocoa was down 1% at $2,507 a tonne.
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