LONDON: Arabica coffee futures on ICE were lower on Thursday, with the market slipping further from last week’s 10-year peak as the focus remained on whether exchange stocks will continue to fall in coming weeks.
COFFEE
May arabica coffee was down 0.4% at $2.5175 per lb by 1512 GMT after rising to a 10-year peak of $2.6045 last week.
ICE certified stocks of arabica coffee stood at 1.028 million bags as of Feb. 16, down by around a third from 1.541 million at the end of 2021, although there have been some tentative signs that they could be beginning to stabilise.
“The continued decline in exchange-registered coffee stocks is lending buoyancy to the price,” Commerzbank said in a report, while noting the inventory reduction had slowed noticeably in recent days.
Dealers noted coffee retailers were beginning to respond to the recent strength in the futures market by raising prices.
May robusta coffee fell 0.1% to $2,271 a tonne.
Prices of Vietnamese coffee rose this week, tracking cues from London, while Indonesia was quiet with few deals sealed due to a surge in coronavirus cases and post-holiday sentiment, traders said on Thursday.
COCOA
May New York cocoa rose 0.2% to $2,676 a tonne.
The market was supported by concerns about dry weather in West Africa linked to seasonal Harmattan winds, which sweep down from the Sahara causing a sharp drop in humidity.
Strong Harmattan conditions have been registered over the hinterlands of Ivory Coast and Ghana, the world’s two largest producers of cocoa, and also over southwest Nigeria, Climate42 said in a report on Wednesday.
May London cocoa was down 1.1% at 1,747 pounds a tonne, with a strong pound weighing on prices.
SUGAR
March raw sugar rose 0.4% to 18.15 cents per lb.
May white sugar was up 0.1% at $483.10 a tonne.
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