Arabica coffee hits 6-week high, buoyed by low stocks

LONDON: Arabica coffee futures on ICE climbed to a six-week high on Friday, boosted partly by low exchange stocks, while sugar and cocoa prices fell.

Coffee

Arabica coffee futures rose 0.7% to $3.2865 per lb by 1108 GMT after touching a six-week high of $3.2940.

Dealers said the market has been supported partly by a decline in certified exchange stocks, as roasters look to secure alternative supplies following the imposition of a 50% tariff on U.S. imports of Brazilian coffee.

Brazil supplies about one-third of U.S. coffee imports.

“Inventories remain low, exports have underperformed in some producing regions, and recent light-to-moderate frosts in Brazil, especially in the Cerrado Mineiro region, have raised concerns about the next harvest,” Rabobank analyst Guilherme Morya said in a report on Friday.

Robusta coffee gained 0.1% to $3,957 a metric ton, having hit its highest in nearly two months at $4,011.

Asia coffee: Prices rise in Vietnam on global cues, high demand for Indonesian beans

Sugar

Raw sugar slipped 0.2% to 16.54 cents per lb.

Dealers were awaiting the release later on Friday of data on sugar and cane production in Center-South Brazil covering the second half of July.

Brazilian sugarcane processor Raizen admitted the possibility of a new shareholder after weak results, which caused the company’s stock to plunge to a record low on Thursday.

White sugar fell 1% to $484.70 a ton.

Cocoa

New York cocoa fell a marginal 0.1% to $8,264 a ton but was on track for a weekly gain of about 3.6%.

Dealers said the recent run-up in prices had led to a pick-up in hedging, while short-term speculators had also taken some profits on long positions ahead of the weekend.

cocoa fell 0.2% to 5,560 pounds per ton.