Arabica coffee regains ground, raw sugar weakens
- March London cocoa rose 0.1% to 1,700 pounds
- March raw sugar fell 0.6% to 18.69 cents per lb
- March arabica coffee rose 1.55% to $2.3655 per lb
LONDON: Arabica coffee futures on ICE were higher on Tuesday, regaining ground after falling for three consecutive sessions, while raw sugar prices were weaker.
Coffee
March arabica coffee rose 1.55% to $2.3655 per lb by 1250 GMT.
Dealers said the market had found some support after the recent sharp decline as it got caught in the overall sell-off in agricultural commodities.
They noted the price outlook could hinge and the extent to which last year's frosts and drought adversely impact the upcoming crop in top producer Brazil.
"Arabica coffee may rise further if expectations for an adverse weather-related slump in Brazil's production come to fruition over the coming months," Saxo Bank said in a report.
March robusta coffee rose 1.5% to $2,229 a tonne.
Raw sugar retreats after hitting 3 week high
Sugar
March raw sugar fell 0.6% to 18.69 cents per lb.
Dealers said a stronger dollar exerted some downward pressure on prices.
They noted that March's premium to May has been rising recently, possibly indicating appetite to take delivery against the front month contract which expires at the end of next month.
March white sugar fell 0.4% to $502.30 a tonne.
Cocoa
March London cocoa rose 0.1% to 1,700 pounds a tonne after earlier dipping to a low of 1,689 pounds - the weakest level since Jan. 7.
March New York cocoa rose 0.6% to $2,508 a tonne.
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