LONDON: Arabica coffee futures on ICE fell to a 1-1/2 year low on Wednesday, extending the market’s recent slide, as favourable crop weather in Brazil and rising exchange stocks continued to weigh on prices.
Coffee
March arabica coffee fell 1.8% to $1.4825 per lb by 1115 GMT after falling to a 1-1/2 year low of $1.4810.
Dealers said rains in Brazil and forecasts for more showers had boosted the outlook for the arabica crop in the world’s top producer.
“The incoming rains will support cherry growth and improve soil moisture,” weather service Maxar said in a note.
Rising exchange stocks have added to the bearish mood.
Dealers noted ICE certified coffee stocks stood at a six-month high of 842,771 bags, as of Jan. 10. There were 186,283 bags pending grading.
March robusta coffee rose 0.05% to $1,841 a tonne.
Raw sugar goes up, arabica hits lowest in 1-1/2 months
Sugar
March raw sugar rose 1.4% to 19.91 cents per lb.
Dealers said short-term supply tightness remained the key supportive factor with March’s premium to May widening to around 1.43 cents from 1.29 cents at the close on Tuesday.
Brazil’s sugar and ethanol industry group Unica was due to release a production report on the key Centre-South region of Brazil covering the second half of December around 1400 GMT.
March white sugar was up 1.85% at $556.20 a tonne.
Cocoa
March London cocoa was unchanged at 2,030 pounds a tonne.
Ivory Coast’s cocoa grind was up 8.9% year on year in December to 172,357 tonnes, data from exporters’ association GEPEX showed on Wednesday.
March New York cocoa fell 0.04% to $2,603 a tonne.
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