LONDON: Arabica coffee futures rose on Wednesday, rebounding from the previous session’s four-month low, with the recent wave of fund long liquidation appearing to have abated for now.
COFFEE
May arabica coffee rose 2.4% to $2.1615 per lb by 1531 GMT, recovering some ground after the previous session’s fall to a four-month low of $2.1015.
Dealers said the market had become technically oversold AFTER the recent sharp decline in prices and could rise further in the short term.
The amount of green coffee stored at ports in the United States fell by 0.5% at the end of February to 5.76 million 60-kg bags, the Green Coffee Association (GCA) said on Tuesday.
May robusta coffee rose 2.8% to $2,139 a tonne.
Coffee traders are scrambling to redirect shipments headed for Russia and Ukraine as trade flows to the two countries collapse because of Western sanctions imposed on Moscow and Kyiv’s move to close its ports.
SUGAR
May raw sugar fell 0.8% to 18.58 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 that production prospects in India were going “from strength to strength”.
May white sugar edged up by 0.02% to $522.80 a tonne.
COCOA
May London cocoa fell 0.3% to 1,719 pounds a tonne.
May New York cocoa rose 0.1% to $2,524 a tonne.
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