LONDON: Arabica coffee futures rose to a seven-month high on Monday, supported by concerns that a cold snap in Brazil later this week could pose a threat to crops in the world's top producer.
COFFEE
September arabica coffee rose 4.0 cents, or 3.65pc, to $1.1345 per lb by 1328 GMT, after rising to a seven-month peak of $1.1410.
Dealers said the latest forecasts for coffee-growing regions in Brazil indicated lower than previously expected temperatures during a cold snap from Friday through Sunday.
They noted it did not yet appear likely to be cold enough to do significant damage to crops but that there were sufficient concerns to prompt short covering.
The recent strong performance had also created a bullish outlook on price charts while further support came from a more positive mood in broader economic markets linked to news that the United States and China had agreed to restart trade talks.
Robusta coffee prices were dragged higher by the strength of the arabica market.
September robusta coffee rose $36, or 2.5pc, to $1,487 a tonne.
SUGAR
October raw sugar was down 0.03 cents, or 0.2pc, at 12.59 cents per lb.
Dealers were digesting news of a record delivery of more than two million tonnes of sugar against the July contract which expired on Friday.
They noted the tendering of Thai sugar added to concerns that physical demand may be weak in Asia. Thai raws often trade at a significant premium to the futures market.
The market remained underpinned, however, by continued concerns that a weaker-than-normal monsoon in India could curtail sugar production.
India is likely to produce 28.2 million tonnes of sugar in the season beginning Oct. 1, 2019, down 14.5pc from a year earlier, a leading industry body said on Monday.
August white sugar fell $1.00, or 0.3pc, to $327.40 per tonne.
COCOA
September London cocoa was up 39 pounds, or 2.2pc, at 1,844 pounds a tonne, buoyed partly by the weakness of sterling.
September New York cocoa rose $43, or 1.8pc, to $2,468 per tonne.
Cocoa arrivals at ports in top grower Ivory Coast reached 2.098 million tonnes between Oct. 1 and June 30, exporters estimated on Monday, up about 11pc from 1.884 million tonnes during the same period last season.
September London cocoa was up 39 pounds, or 2.2pc, at 1,844 pounds a tonne.
Comments
Comments are closed.