LONDON: Arabica coffee futures on ICE hit a fresh one-month high on Monday amid still critically low exchange stocks and as top grower Brazil’s currency strengthened. Sugar and cocoa headed lower meanwhile.
COFFEE: Arabica coffee rose 3 percent to USD3.1460 per lb at 1510 GMT, having gained 6.5 percent last week. It earlier hit a one-month high of USD3.1585.
Driving coffee, the Brazilian real continued to strengthen, boosted by expectations Flavio Bolsonaro will be elected president.
A strong real deters exporters from selling by lowering their returns in local currency terms.
Elsewhere, ICE-certified stocks were last at 240,767 bags, not far off last month’s 27-year-low of 217,646 bags.
Market participants are growing nervous that Brazil supplies will not arrive at ICE warehouses ahead of the December contract expiry.
Robusta coffee rose 1.6 percent to USD3,459 a metric ton.
Top robusta grower Vietnam’s coffee output is likely to remain steady in the 2026/27 season as stronger production from younger, replanted trees offsets losses linked to unfavourable weather earlier this year.