Adds background, updates pries
LONDON, Nov 25 (Reuters) – Arabica coffee futures rose on Friday as the market extended its rebound from last week’s 16-month low, while raw sugar and cocoa prices also climbed.
* March arabica coffee KCc2 rose 2.1% to $1.6615 per lb by 1517 GMT as the market pulled further away from last week’s 16-month low of $1.5405.
* The contract was on track for a weekly gain of 7.1%, regaining most of the ground lost the previous week when prices fell by 7.7%.
* Fitch Solutions said in a note that despite the rebound, “prices remain capped by a weak global outlook and expectations of a move to a production surplus, led by an improved production outlook in Brazil following recent rainfall.”
* January robusta coffee LRCc1 rose 0.9% to $1,857 a tonne.
* The robusta market has been supported by rains in Vietnam that have disrupted the harvest.
* March raw sugar SBc1 fell 0.4% to 19.48 cents per lb with the contract on track for a weekly loss of about 3%.
* Dealers noted mills in Brazil continued to favour using cane for sugar rather than ethanol production.
* Czarnikow on Thursday cut its forecast for global sugar surplus for the current 2022/23 season to 2 million tonnes from 3.6 million previously.
* March white sugar LSUc1 fell 1.2% to $532.50 a tonne.
* March New York cocoa CCc2 rose 1% to $2,469 a tonne with the contract on track for a weekly gain of around 0.5%.
* March London cocoa LCCc2 rose 0.6% to 1,971 pounds a tonne.
(Reporting by Nigel Hunt; Editing by Shinjini Ganguli and Emelia Sithole-Matarise)
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