Commodities

SOFTS-Arabica coffee hits 4-1/2 year high on Brazil frosts

Credit: REUTERS/JUAN CARLOS ULATE

Arabica coffee futures on ICE hit 4-1/2 year highs on Wednesday as investors assessed the damage done to crops in top producer Brazil from frosts a day earlier, the second to hit the crop in a month. [nL1N2OW16V]

LONDON, July 21 (Reuters) - Arabica coffee futures on ICE hit 4-1/2 year highs on Wednesday as investors assessed the damage done to crops in top producer Brazil from frosts a day earlier, the second to hit the crop in a month.

COFFEE

* September arabica coffee KCc2 rose 0.1% to 169.90 by 1100 GMT, having earlier hit its highest since late 2016 at $171.20. The contract closed up nearly 7% on Tuesday.

* September robusta coffee LRCc2 fell 1.1% to $1,742 a tonne, having hit a three year high of $1,793 on Tuesday.

* Dealers said Brazil's coffee crop, which is still flowering, could have lost 1-2 million bags due to the frosts, which hit key coffee growing areas like Minas Gerais and Sao Paulo states.

* They added however that conditions should warm to above freezing on Wednesday.

* Coffee trees are extremely sensitive to frost, which kill leaves and can hamper the production potential for the next crop.

SUGAR

* October raw sugar SBc1 fell 0.9% to 17.27 cents per lb, having closed up 2% on Tuesday.

* While frosts also hit some sugar cane areas in Brazil, dealers said the affected areas had already been harvested and a repeat of frosts in the same areas could not do much more damage.

* Still, top sugar producer Brazil already has a smaller cane crop this year due to a drought and the frosts over the past month have further hurt production.

* Dealers said on balance, shrinking Brazilian output should more than offset worries over the rapid spread of the Delta coronavirus variant, boosting sugar prices.

* October white sugar LSUc1 fell 0.5% to $446.90 per tonne, having closed up 1.2% on Tuesday.

COCOA

* September London cocoa LCCc1 ​​rose 2.2% to 1,594 pounds per tonne, having hit its lowest in a year last week.

* Cocoa remains under pressure from this season's record output in Ghana, the world's second-biggest producer, despite some positive data on demand recovery recently.

* September New York cocoa CCc1 rose 0.9% to $2,278 a tonne.

(Editing by Kirsten Donovan)

((maytaal.angel@thomsonreuters.com(00442075429105)(Reuters Messaging: maytaal.angel.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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