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Updates with comments and closing prices
NEW YORK/LONDON, Aug 12 (Reuters) – Robusta coffee futures on ICE hit 5-1/2-month highs on Friday on ongoing worries over tightening supplies in top producers Vietnam and Brazil, while arabica coffee also rose to a fresh one-month peak.
COFFEE
* December arabica coffee KCc2settled up 2.85 cents, or 1.3%, at $2.224 per lb, hitting a one-month high of $2.2340.
* Arabica is being driven higher by near-term supply tightness, represented by plunging ICE exchange stocks KC-TOT-TOT and an inverted futures market structure, where nearby coffee futures trade at a premium to those further out KC-1=R.
* Dealers said, however, the decline in ICE exchange stocks, currently at their lowest in 23 years, should end shortly, with the latest data showing more than 200,000 bags due to be graded.
* German coffee producer Tchibo will leave the Russian market by the end of the year, business daily Kommersant reported on Friday.
* November robusta coffee LRCc2 rose $38, or 1.7%, to $2,261 a tonne, having hit its highest since late February at $2,264.
* Robusta is gaining support from tightening supplies in Vietnam, where cherry development has suffered from a lack of fertiliser, and from plunging exports from Brazil, where roasters are using more of the beans to cut costs.
SUGAR
* October raw sugar SBc1 rose 0.11 cent, or 0.6%, at 18.60 cents per lb, having hit a three-week high of 18.65.
* Dealers said sugar was gaining support from fund short-covering against a backdrop of improved macroeconomic signals, with investors scaling back views on how far U.S. interest rates and inflation can climb. MKTS/GLOB
* The USDA increased its projection for sugar supplies in the United States after reporting a higher amount of sugar imports as well as better local production.
* October white sugar LSUc1 rose $5.00, or 0.9%, to $560.10 a tonne.
COCOA
* December New York cocoa CCc2settled down $57, or 2.3%, at $2,394 a tonne.
* Cocoa processing in Brazil, the world’s fifth largest chocolate consumer, fell 0.8% in July from a year earlier to 19,883 tonnes.
* December London cocoa LCCc2 fell 15 pounds, or 0.8%, to 1,796 pounds per tonne.
(Reporting by Marcelo Teixeira and Maytaal Angel; editing by David Evans)
((marcelo.teixeira@tr.com; +1 332 220 8062; Reuters Messaging: marcelo.teixeira.thomsonreuters.com@reuters.net – https://twitter.com/tx_marcelo))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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