Arabica, robusta coffee gain in thin, volatile pre-New Year trade

• March arabica coffee rose 1.55 cents, or 1.2%, to $1.2885 per lb by 1258 GMT. The contract fell 1.6% on Thursday.
• Sugar is consolidating after climbing to a peak of 13.67 cents on Dec. 13, the highest level for the front month in more than one year.
• The front month fell to a seven-week low of $2,388 on Monday amid an improving crop outlook in top cocoa producer Ivory Coas.

LONDON: ICE arabica coffee futures rose on Friday in thin, volatile trade ahead of the upcoming New Year holiday, while robusta coffee posted strong gains.

COFFEE

March arabica coffee rose 1.55 cents, or 1.2%, to $1.2885 per lb by 1258 GMT. The contract fell 1.6% on Thursday.

Conditions remained volatile with last week's sharp advance to the highest level in more than two years followed by a rapid setback.

Brazil's real hit its highest since early November,  discouraging exporters from selling dollar-priced coffee by reducing returns in local currency terms.

March robusta coffee rose $34, or 2.5%, to $1,384 a tonne.

Vietnam's coffee exports in 2019 likely fell 13.9% to 1.61 million tonnes, data showed.

A dealer said robusta premiums in top producer Vietnam are near record levels, with farmers holding out for higher prices.

SUGAR

March raw sugar rose 0.14 cents, or 1%, to 13.58 cents per lb.

Sugar is consolidating after climbing to a peak of 13.67 cents on Dec. 13, the highest level for the front month in more than one year.

Indian Prime Minister Narendra Modi has launched a 60-billion-rupee ($842 million) plan to tackle water shortages, exhorting farmers to eschew water-guzzling crops such as rice and sugar cane.

March white sugar climbed $2.60, or 0.7%, higher at $361.70 a tonne, having hit its highest since October last year at $362.

COCOA

March New York cocoa was up $60, or 2.5%, at $2,462 a tonne.

The front month fell to a seven-week low of $2,388 on Monday amid an improving crop outlook in top cocoa producer Ivory Coast, but prices are now consolidating from oversold conditions.

Ivory Coast has issued an arrest warrant for Guillaume Soro, a former rebel leader and candidate in next year's presidential election.

March London cocoa rose 18 pounds, or 1%, to 1,781 pounds a tonne.