SOFTS-Arabica coffee hits 1-1/2 month high, raw sugar gains


LONDON, April 23 (Reuters) - Arabica coffee futures on ICE hit a 1-1/2 month peak on Friday, helped by a strengthening Brazilian real and by signs demand is recovering just as supplies from Brazil are expected to fall short.

Raw sugar gained, heading back towards Thursday's peak above 17 cents/lb.


* July arabica coffee KCc2 rose 0.5% to $1.3680 per lb at 1032 GMT, after peaking at $1.3700, the highest since early March.

* The real BRL= hit a 1-1/2 month peak versus the dollar on Thursday, deterring farmers in the world's top coffee producer from selling by lowering returns in local currency terms.

* Nestle NESN.S reported its strongest quarterly sales growth in 10 years on Thursday. Coffee was the largest contributor to sales growth, with Nespresso sales up more than 17%.

* "We adjust our 2021/22 production estimates down to 164.8 million bags on further weather risks in Brazil, Colombia, and Indonesia. With (a) demand estimate of 173.1 million bags, we expect a global deficit of 8.4 million bags," said Citi in a note.

* The bank upgraded its 6-12 month price forecast by 0.05 cents/lb to $1.40/lb.

* July robusta coffee LRCc2 rose 0.1% to $1,409 a tonne.


* May raw sugar SBc1 ​​rose 0.3% to 16.97 cents per lb, after peaking at a 1-1/2 month high of 17.07 cents on Thursday.

* Dealers said sugar remains well supported, with a diminished crop outlook in Brazil and the European Union.

* Citi lowered its 2021/22 sugar surplus forecast to ~2.9 million tonnes, 22% less than its March estimate, primarily due to crop downgrades in Brazil. The bank sees second quarter prices averaging 16.2 cents/lb.

* ​August white sugar LSUc1 rose 0.6% to $465.30 a tonne.


* July London cocoa LCCc2 rose 0.2% to 1,650 pounds per tonne​.

* July New York cocoa CCc2 ​​rose 0.3% to $2,448 a tonne.

(Editing by Elaine Hardcastle)

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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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