LONDON: Arabica coffee futures on ICE rose to the highest level in more than seven months on Friday, boosted by forecasts that there may be crop damaging frost in parts of Brazil this weekend.
COFFEE
September arabica coffee rose 0.35 cents, or 0.3pc, to $1.14 per lb at 1146 GMT, after peaking at $1.1565, its highest since Nov. 20, 2018.
Dealers said the potential for frost damage had sparked buying interest and prompted many potential sellers to back away from the market.
"This market can fly (if there is damage) and you cannot afford to be naked short futures here. It is too much risk," one dealer said.
Concern is centred on the state of Parana in Brazil where coffee production totals about one million bags.
Dealers said the recent strength of Brazil's real was also supportive for prices, making it less attractive in local currency terms for producers to sell.
September robusta coffee rose $7, or 0.5pc, to $1,481 per tonne, after touching a one-month peak of $1,493.
COCOA
September New York cocoa rose $16, or 0.7pc, to $2,449 per tonne.
Dealers worries about dry weather in the Ivory Coast and Ghana were underpinning prices while further clarity was awaited about a plan by Ivory Coast and Ghana to introduce a floor price for exports.
"There is some fear related to the floor price but that's just one factor, and we're still waiting (for details on) what will be decided so we can better understand the impact," one dealer said.
September London cocoa fell 12 pounds, or 0.65pc, to 1,836 pounds per tonne after rising sharply on Thursday when New York-based markets were shut for US Independence Day.
SUGAR
October raw sugar was down 0.05 cents at 12.49 cents per lb.
Dealers said the market continued to keep a close watch on India's monsoon with rainfall beginning to pick up but concerns still persisted that it will be weaker-than-normal this year, which could curb sugar production.
August white sugar rose $0.50, or 0.2pc, to $320.80 per tonne.
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