ICE arabica coffee futures closed up strong on Tuesday, nearing last week's 34-year high on commercial buying after an early sell-off and concerns about supplies for high-quality beans. The strength spilled into robusta coffee in London, which followed ICE coffee to hit a contract high in its most volatile session in more than two years.
Arabica futures turned higher in light volume down 40 percent below the 30-day norm, after testing lower levels where roaster buying provided a lift. The greenback fell and helped lift coffee prices, dealers said.
ICE July arabica coffee reversed early losses and surged 5.50 cents or 1.9 percent to finish at $2.9630 per lb, near the 34-year high of $3.0250 hit on April 20. Robusta coffee futures surged to a four-week top, trading in an exceptionally wide $190 range in heavy volume after the Easter holiday break.
Cocoa futures edged up in thin volumes, with the focus on good development of the mid crop in top grower Ivory Coast. ICE second-month, July cocoa rose $33 or 1.1 percent to close at $3,093 per tonne, while London July cocoa climbed 17 pounds to finish at 1,907 pounds per tonne.
Raw sugar futures on ICE were choppy, with near-term pressure on expectations of ample production from Brazil and Thailand and the possibility of further unrestricted exports by India, which would boost supplies to the market. ICE May raw sugar contract fell 0.13 cent to close at 24.94 cents per lb, while benchmark July fell 0.16 cent to 23.24 cents.