SOFTS-Arabica coffee prices climb buoyed by weaker dollar

Updates with market activity, includes closing prices and comments

NEW YORK/LONDON, Sept 9 (Reuters) – Arabica coffee futures on ICE closed higher on Friday, supported partly by a weaker dollar, while sugar and cocoa prices also rose.

COFFEE

* December arabica coffee KCc2 settled up 6.3 cents, or 2.8%, at $2.285 per lb, though prices remained far below a six-month peak of $2.4295 set on Aug. 25.

* Dealers said recent light showers in Brazil’s coffee belt may have aided the crop outlook to a limited extent but concerns remain over dry conditions, particularly given a continued La Nina weather event.

* “With forecasters anticipating the continuation of La Nina weather conditions through the remainder of 2022, we highlight an increased upside risk to coffee prices due to drought and crop stress,” Fitch Solutions said in a note.

* A La Nina weather event is associated with dry weather in Brazilian coffee areas.

* November robusta coffee LRCc2 fell $12, or 0.5%, to $2,264 a tonne.

* Vietnam’s coffee exports in August were down 1.2% from July at 112,531 tonnes, government customs data showed.

SUGAR

* October raw sugar SBc1settled up 0.29 cents, or 1.6%, at 18.22 cents per lb.

* Dealers said the raws market lacked a clear overall trend at the moment, though trading volumes had been boosted by index funds rolling positions out of October into March.

* October white sugar LSUc1, which expires on Sept. 15, rose $7.80, or 1.3%, to $588.00 a tonne.

* Dealers said there appeared to be a strong appetite to receive white sugar against the October contract, with the contract’s premium to December standing at around $40.

COCOA

* December New York cocoa CCc2 settled up $32, or 1.4%, to $2,360 a tonne as the market regained some ground after three consecutive daily declines, aided partly by the weaker dollar.

* The December contract was still on track for a weekly loss of about 2.5%.

* December London cocoa LCCc2settled up 12 pounds, or 0.7%, at 1,854 pounds per tonne​​.

(Reporting by Nigel Hunt; Editing by David Goodman, David Evans and Shinjini Ganguli)

((nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net))

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