LONDON: Arabica coffee futures on ICE rose on Wednesday boosted partly by possible quality issues with Brazil’s 2026 crop due to higher humidity linked to the current El Nino weather event.
COFFEE
Arabica coffee gained 2.4percent to USD2.9640 per lb by 1147 GMT. Brazil’s Cooxupe, the country’s largest coffee co-operative and the top Brazilian coffee exporter, said in an advisory to its associated farmers on Tuesday that it will reject beans that show “inferior quality standards.” Dealers said the rise in prices was also driven partly by technical issues with the market oversold following a steep decline from recent peaks set in late August.
Robusta coffee rose 3.55percent to USD3,531 a metric ton.
SUGAR
Raw sugar fell 1.85percent to 17.49 cents per lb. Dealers said rains in Brazil could curb sugar production but overall supplies remain ample. They noted the expiry of the October contract on Wednesday was providing a short-term focus with some expecting about 1.6 million tons of sugar to be tendered.
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