LONDON: Arabica coffee futures rose on Wednesday, edging away from the prior session’s four-month low, with the recent wave of fund long liquidation appearing to have at least temporarily abated while sugar and cocoa prices also edged up.
Coffee
May arabica coffee rose 0.5% to $2.1230 per lb by 1130 GMT, recovering some ground after the prior session’s fall to a four-month low of $2.1015.
Dealers said a slight recovery in coffee stock levels could, however, limit the scope of the recovery in prices.
The amount of green coffee stored at ports in the United States unexpectedly rose by 6% at the end of February to 6.15 million 60-kg bags, the first increase since August 2021, the Green Coffee Association (GCA) said on Tuesday.
May robusta coffee rose 0.8% to $2,097 a tonne.
Coffee traders are scrambling to redirect shipments headed for Russia and Ukraine as trade flows to the two countries collapse due to Western sanctions imposed on Moscow and Kyiv’s move to close its ports.
Arabica coffee hits 4-month low, sugar and cocoa also fall
Sugar
May raw sugar rose 0.1% to 18.75 cents per lb.
Dealers said crop outlooks in the world’s top two producers - Brazil and India - continued to improve.
“Strong rainfall in Brazil’s southern CS region relieve dryness concerns there with good rainfall to persist,” Rabobank said in a note, adding production prospects in India were going “from strength to strength.”
May white sugar rose 0.3% to $524.40 a tonne.
Cocoa
London cocoa rose 0.2% to 1,727 pounds a tonne.
May New York cocoa rose 0.3% to $2,530 a tonne.
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