LONDON: Coffee and sugar futures on ICE rose on Thursday, buoyed by broad-based gains in commodity and equity markets after the US Federal Reserve’s upbeat reading of the world’s largest economy.
March arabica coffee was up 0.4% at $2.3825 per lb at 1224 GMT as the market continued to climb back up towards last week’s 10-year high of $2.5235.
Dealers said the market continued to derive support from logistics issues which have slowed the flow of supplies from top producer Brazil with stocks in the US continuing to decline.
March robusta coffee rose 0.04% to $2,304 a tonne.
The weather has been becoming drier in top robusta producer Vietnam, allowing the harvest to proceed, but an upcoming storm, if it hits the key Central Highlands growing region, would disrupt the bean drying process and potentially hurt bean quality.
Arabica coffee climbs on crop concerns, sugar slips
March raw sugar rose 0.5% to 19.39 cents per lb.
Dealers said, however, the market’s decline earlier this week, which saw it slump to a one-week low of 19.18 cents on Wednesday, may have tempered fund appetite for the sweetener and there could now be resistance around 19.50 cents.
Dealers said weakness in India’s domestic sugar market had also lowered the price to where exports are viable and there remained the prospect that India could sell more than 6 million tonnes on the world market this year.
March white sugar rose 0.5% to $505.50 a tonne.
March London cocoa fell 0.2% to 1,717 pounds a tonne, weighed partly by a stronger pound as the Bank of England raised its main interest rate.
March New York cocoa was up 0.2% at $2,552 a tonne.