LONDON: Arabica coffee futures on ICE recovered on Tuesday, heading back towards a recent near 10-year high on persistent supply tightness linked mostly to logistical snags.
Coffee
March arabica coffee rose 1.1% to $2.3380 per lb at 1142 GMT. The market climbed to $2.3955 on Friday, its highest in nearly 10 years.
The uptrend is seen intact even at these levels. Rabobank said worries about logistical issues has spurred panic buying across the market.
Dealers said roasters are rushing to buy, having collectively given up on the hope that prices will fall.
They also noted nearby coffee futures are moving to a premium versus those further out, indicating supply tightness.
Certified stocks continue to fall in both arabica and robusta.
March arabica may retest resistance at $2.3865 per lb, a break above which could lead to a gain to $2.4260-$2.4895, a Reuters technicals analysis showed.
January robusta coffee rose 0.5% to $2,262 a tonne.
Sugar
March raw sugar lost 0.5% to 19.65 cents per lb, extending the market’s retreat from a 4-1/2 year high of 20.69 cents set last week.
Dealers said there was little fundamental reason for sugar prices to fall far, especially as prices are currently below the Brazilian ethanol parity.
They added, however, that selling from India persists, meaning prices should remain range-bound, though with an upward bias.
French sugar producer Tereos reported first half revenues up 7% at 2,199 million euros, boosted by increased prices in all its market segments and in its starch business.
March white sugar fell 0.3% to $506.40 a tonne.
Cocoa
March London cocoa rose 1% to 1,757 pounds a tonne, having hit a one month high of 1,757.
March New York cocoa rose 0.2% to $2,593 a tonne.
Source: Brecorder
