SOFTS-Arabica coffee, raw sugar hit highest levels in nearly two months


Updates prices, adds details

LONDON, April 23 (Reuters) - Arabica coffee futures on ICE hit its highest level in nearly two months 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 also hit its highest level since late February, above 17 cents/lb.


* July arabica coffee KCc2 was up 2.5% at $1.3955 per lb by 1246 GMT, after peaking at $1.4015, the highest since early March.

* "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.

* The Brazilian 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%.

* July robusta coffee LRCc2 rose 1.1% to $1,423 a tonne.


* May raw sugar SBc1 ​​rose 0.8% to 17.06 cents per lb, after peaking at a 1-1/2 month high of 17.08 cents.

* 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 around 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 0.5% to $464.50 a tonne.


* July London cocoa LCCc2 was flat at 1,647 pounds per tonne​.

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

a tonne.

(Editing by Elaine Hardcastle and Susan Fenton)

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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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