LONDON: Arabica coffee futures on ICE were higher on Wednesday, boosted by a further decline in both exchange and U.S. stocks, while sugar prices also edged up.
COFFEE
May arabica coffee gained 0.3% to $2.5240 per lb by 1416 GMT.
Dealers noted exchange stocks of arabica coffee were continuing to fall, standing at 1.027 million bags on Feb. 15, down from 1.541 million at the end of 2021.
The decline is set to continue in coming weeks as supplies continue to be de-certified and sold in a tight spot market.
The amount of green coffee stored at ports in the United States fell by 37,851 bags by the end of January to 5.79 million 60kg bags, the fifth consecutive monthly reduction, the Green Coffee Association (GCA) said on Tuesday.
May robusta coffee rose 0.3% to $2,272 a tonne.
SUGAR
March raw sugar rose 0.1% to 18.09 cents per lb.
Dealers said the market was waiting to see if state-run Brazilian oil company Petrobras would raise gasoline prices in its domestic market.
Biofuel ethanol is struggling to compete with gasoline in Brazil, with January demand falling by 32% from the same month a year earlier.
Weak demand for ethanol encourages mills to use cane to produce sugar rather than the biofuel.
“Brazil’s government continues to dither on allowing the rise in global oil prices to flow through to domestic fuel prices. Only then can local ethanol prices rise and take sugar prices higher with them,” Commonwealth Bank of Australia analyst Tobin Gorey said in a note.
May white sugar rose 0.4% to $481.80 a tonne.
COCOA
May New York cocoa rose 0.3% to $2,730 a tonne.
May London cocoa was unchanged 1,819 pounds a tonne with a stronger pound helping to keep a lid on the market.
Comments
Comments are closed for this article.