Commodities

SOFTS-Arabica coffee surge 6% on Brazil frost fears

Credit: REUTERS/JUAN CARLOS ULATE

Arabica coffee futures on ICE jumped 6% to their highest in 1-1/2 months on Tuesday, lifted by fears over frosts in top producer Brazil, while robusta coffee hit a three-year high.

Updates prices, adds detail

LONDON, July 20 (Reuters) - Arabica coffee futures on ICE jumped 6% to their highest in 1-1/2 months on Tuesday, lifted by fears over frosts in top producer Brazil, while robusta coffee hit a three-year high.

COFFEE

* September arabica coffee KCc2 rose 6% to $1.6575 per lb by 1434 GMT after touching its highest since early June at $1.6610.

* September robusta coffee LRCc2 was up 2.4% at $1,774 a tonne, having hit a three-year high of $1,793.

* Rabobank analyst Carlos Mera cited reports of frost in Minas Gerais, a key arabica area of Brazil, and potentially also in Sao Paulo and Parana.

* "The market right now is trying to asses the damage. This is the first time we see frost in a significant part of the coffee belt," said Mera.

* Coffee trees are extremely sensitive to frost. A light frost will kill the leaves, forcing the plant to regrow them next season, while frosts that last longer than two hours can kill the root system completely.

SUGAR

* October raw sugar SBc1 rose 1.8% to 17.38 cents per lb, having closed with a 3.6% decline on Monday.

* Dealers cited reports that freezing temperatures had also hit top producer Brazil's sugar cane crop but said it would take some time to determine the damage, if any.

* Global financial markets steadied from a sharp selloff in the previous session, even though investors remained worried about a stalled recovery because of the Delta variant of the coronavirus. MKTS/GLOBO/RFRX/

* October white sugar LSUc1 rose 1.2% to $448.60, having lost 4.2% on Monday.

COCOA

* September London cocoa LCCc1 fell 0.3% to 1,553 pounds a tonne, having fallen by 2.1% on Monday.

* September New York cocoa CCc1 was little changed at $2,239 a tonne, steadying after Monday's 3.5% loss.

* Cocoa remains under pressure from this season's record output in Ghana, the world's second-biggest producer, and from weak demand.

(Reporting by Maytaal Angel Editing by Jane Merriman and David Goodman )

((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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