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LONDON, Aug 23 (Reuters) – Arabica coffee futures on ICE rose to a seven-week high on Tuesday, boosted by concerns that dry weather in Brazil could dent the outlook for next year’s crop.
COFFEE
* December arabica coffee KCc2 was 1.1% higher at $2.2355 per lb by 1041 GMT after peaking at a seven-week high of $2.2540.
* The market was supported by concerns about the crop outlook in Brazil with heavy rains earlier this month triggering early flowering in some areas but subsequent dry weather raising the prospect that there could be insufficient moisture to sustain the development of coffee buds and cherries.
* Weather service Maxar said in a report that over the next five days the only chance for light isolated showers would be in northeastern coffee areas, while adding the 6-10 day outlook was for mostly dry conditions.
* Dealers said a rebound in exchange stocks remained a bearish influence but was currently being outweighed by the crop concerns in Brazil.
* ICE certified arabica stocks on Aug. 22 stood at 627,750 bags, a fifth successive daily increase after setting a 23-year low of 571,580 bags on Aug. 15.
* November robusta coffee LRCc2 rose 0.5% to $2,255 a tonne.
SUGAR
* October raw sugar SBc1 rose 0.1% to 17.95 cents per lb.
* Dealers said the market was awaiting more clarity on the outlook for the cane crop in Centre-South Brazil in the current 2022/23 season with most analysts expecting production to rise despite government agency Conab late last week forecasting there would be the smallest volume since 2011.
* October white sugar LSUc1 rose 0.04% to $549.70 a tonne.
COCOA
* December New York cocoa CCc2 fell 0.4% to $2,347 a tonne.
* Ivory Coast cocoa farmers welcomed light rainfall last week, which will be good for the development of the October-to-March main crop, they said on Monday.
* December London cocoa LCCc2 was down 0.55% at 1,809 pounds a tonne.
(Reporting by Nigel Hunt; Editing by Kirsten Donovan)
((nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net))
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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