LONDON: Arabica coffee futures on ICE rallied to a three-week high on Tuesday amid concerns over falling ICE-certified stockpiles and the devastating earthquake in Colombia, the world’s second-largest arabica grower.
Raw sugar hovered near Monday’s 10-month peak.
COFFEE
ICE arabica coffee rose 2.9percent to USD3.2285 per lb by 1238 GMT after hitting a three-week peak of USD3.2755 per lb. ICE-certified stocks were last at 242,673 60kg bags, their lowest since late 2023, exchange data showed.
“Certified stocks traditionally are the trade’s final backstop. Considering stocks at destination are historically low, the current certified (stock) levels aren’t a viable buffer, not even close,” GSX Commodities said in a note. The commodities advisory and trading firm added, however, that the market is still on course for a wide surplus and that this should eventually limit gains, even if well-capitalised Brazilian farmers are not selling much for now.
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