LONDON: Arabica coffee futures on ICE steadied on Tuesday, having hit 13-year peaks in the prior session on lingering concerns over supplies and uncertainty about the European Union’s deforestation regulation.
COFFEE: March arabica coffee slipped 0.5% to $2.8080 per lb at 1515 GMT, having hit its highest since May 2011 on Monday at $2.9150.
The crop in top producer Brazil appears to have lost some potential following the drought earlier this year, with forecasters increasingly expecting lower arabica output this season.
Dealers said the market remains concerned the attempt by right-leaning parties in the European Parliament to delay and water down the EU Deforestation Regulation (EUDR) could backfire, with the law coming into effect at the end of December as originally planned.
January robusta coffee fell 2% to $4,638 a metric ton.
COCOA: March London cocoa rose 0.8% to 6,735 a ton, having closed down 0.3% on Monday.
The contract posted a stellar 22.19% gain last week, its highest ever weekly gain.
Dealers said cocoa is steadying as last week’s bullish news has been priced in for now, and as the early expected arrival of Harmattan winds in West Africa could, potentially, reduce the risk of black pod disease.
Cocoa arrivals at ports in top grower Ivory Coast reached 549,000 tons by Nov. 17 since the start of the season on Oct. 1, up from 417,000 tons the same period last season, but the market expects arrivals to tail off going forward.
March New York cocoa slipped 0.3% to $8,289 a ton. SUGAR: March raw sugar fell 1.1% to 22.96 cents per lb, having posted a sixth consecutive weekly loss last week.
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