NEW YORK/LONDON: Arabica coffee futures rebounded above a 3-1/2-month low on Tuesday, as traders closely monitored weather in top grower Brazil, where forecasts for below-normal rain in some regions raised concern about crop pollination.
COFFEE
December arabica coffee settled up 0.4 cent, or 0.3 percent, at $1.2415 per lb, after falling to its lowest since June 28 at $1.23.
“Below normal rainfall is expected across most of Minas Gerais, Espirito Santo, and Bahia. Above normal rainfall is likely in far southern Minas Gerais, Sao Paulo, and Parana,” said meteorologist MDA Information Systems in a six- to 10-day forecast for Brazil’s coffee regions.
Coffee trees in Brazil have flowered but require further rain to support pollination.
“Certain producing regions are still trying to make up for the drier summer but rain in the forecast could create more normal conditions and create news for a continued sideways trade,” said Peter Mooses, senior market strategist for RJO Futures in Chicago.
Industry demand remained weak, with dealers noting roasters were unwilling to buy more supplies in the spot market, limiting the upside potential.
November robusta coffee settled down $7, or 0.4 percent, at $1,981 per tonne.
Top robusta grower Vietnam has been hit by deadly flooding recently, although dealers said it has not reached the country’s coffee areas.
“The weather is the one thing that still remains uncertain,” the trader said. “But I still think there’s plenty of coffee around.”
SUGAR
March raw sugar settled down 0.15 cent, or 1.1 percent, at 14.03 cents per lb.
The market remained range-bound with dealers saying the upside was capped by the prospect of a global 2017/18 surplus.
“Latest beet tests carried out in Germany suggest that all regions in the country are seeing sugar yields which are above the 5-year average,” ING said in a market note.
December white sugar settled down 70 cents, or 0.2 percent, at $368.30 per tonne.
COCOA
December New York cocoa settled up $20, or 1 percent, at $2,064 per tonne.
Four traders estimated North America’s third-quarter grind data on Thursday will show a 2-3 percent rise year-over-year.
Third-quarter data for Asia, expected on Friday, was pegged up 10 percent by dealers.
December London cocoa settled up 19 pounds, or 1.2 percent, at 1,556 pounds per tonne, with the weakness of sterling contributing to the market’s advance.
Source: Brecorder.com
