LONDON: Arabica coffee futures on ICE were higher on Thursday as the market waited to see if there would be sufficient rain in Brazil over the next few days to aid the flowering of next year’s crop, while cocoa and sugar prices also rose.
December arabica coffee rose 1.7% to $1.9670 per lb by 1336 GMT.
Dealers said there remained concerns that dry conditions in top producer Brazil could hurt the flowering of next year’s crop although some rains are forecast over the next few days.
“The market continues to be driven by weather in Brazil and COVID-related disruption affecting trade in Asia,” the International Coffee Organization said in a monthly update.
A shortage of available container freight capacity has had an adverse impact on shipments of coffee from Asian producers such as Vietnam and Indonesia.
November robusta coffee was up 0.6% at $2,128 a tonne.
The robusta market’s focus is beginning to turn to the harvest in top producer Vietnam, which is due to start next month.
Arabica coffee falls from two-month top but stocks underpin
December New York cocoa rose 0.4% to $2,726 a tonne, edging up towards Monday’s 10-month peak of $2,792.
The market remained underpinned by heavy rainfall in top producer Ivory Coast that has triggered an outbreak of fungal black pod disease in some regions.
Dealers were also beginning to focus on third quarter grind data due to be issued next week, with an overall year-on-year rise anticipated as demand begins to revive.
The European grind is due to be issued on Wednesday and the North American grind on Thursday.
December London cocoa was 0.2% higher at 1,864 pounds a tonne.
March raw sugar was up 0.4% at 19.85 cents per lb.
Dealers said the market lacked any clear overall trend while trading volumes were currently low.
December white sugar rose 0.5% to $510.90 a tonne.