LONDON: Arabica coffee futures on ICE rose to a 2-1/2 month high on Friday, extending this month’s strong run-up, with the market supported by low exchange stocks and concerns that recent cold weather could reduce the size of next year’s crop in Brazil.
Coffee
Arabica coffee futures rose 0.1% at $3.6540 per lb by 1112 GMT after setting a 2-1/2 month high of $3.6950.
Prices have risen around 26% since the start of August.
“The price increase since then is attributable to low certified exchange stocks following the introduction of U.S. tariffs of 50% on imports from Brazil and possible frost damage in a Brazilian growing region,” Commerzbank said in a note.
A cold snap earlier this month will reduce the size of the next coffee crop in Brazil’s key Cerrado Mineiro growing region by around 412,000 60-kg bags, or 5.5%, coffee cooperative Expocacer said in a report this week.
Robusta coffee roses 1.4% to $4,583 a metric ton.
Arabica coffee hovers just below recent 2-1/2 month peak
Sugar
Raw sugar rose 0.1% to 16.36 cents per lb.
Raw sugar futures prices on ICE are expected to rise another 5% higher from current levels partly due to lower than previously expected supply in top producer Brazil, a Reuters poll of 10 traders and analysts showed.
White sugar gained 0.3% to $484.10 a ton.
Cocoa
New York cocoa was up 0.3% at $7,673 a ton although the market was on track for a weekly loss of 7.3%.
Dealers said the market had been weighed by weak demand although there remained concerns that dry weather could reduce the size of 2025/26 main crops in West Africa.
London cocoa was down 0.5% at 5,332 pounds per ton.