LONDON: Robusta coffee futures on ICE rallied on Wednesday as diminished flows from Uganda and Indonesia helped prices to recover from eight-month lows hit this month. Sugar and cocoa prices also gained.
COFFEE
Robusta coffee rose 3.2percent to USD3,445 a metric ton by 1240 GMT. The contract hit an eight-month low of USD3,173 in early April. Dealers said robusta coffee flows from Indonesia and Uganda are diminishing for seasonal reasons, though Brazil should soon start harvesting what is expected to be a bumper crop. Rabobank noted also that robusta exports from Brazil doubled in the first 17 days of April compared with a year earlier.
Brazil is the world’s second-largest robusta grower, followed by Indonesia and then Uganda. Arabica coffee rose 2.4percent to USD2.8940 per lb, having hit its lowest since early March at USD2.7830 on Tuesday. “The (recent arabica) rallies fell short of technical objectives and this keeps bullish momentum at bay. The imminent arrival of the Brazilian crop also limits rally potential,” said broker ADMIS.
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