SOFTS-Robusta coffee prices rise, buoyed by tight supplies

Credit: REUTERS/KHALED ABDULLAH

LONDON, Jan 3 (Reuters) - Robusta coffee futures on ICE rose on Wednesday, supported by tight supplies following a decline in exports from top producer Vietnam, while sugar prices were also higher.

COFFEE

* March robusta coffee LRCc2 was up 0.5% at $2,818 a metric ton by 1056 GMT.

* Dealers said farmers in Vietnam were holding onto supplies in the hope prices may rise even further, while there were also concerns that continued attacks on shipping in the Red Sea may disrupt the flow of supplies from Asian producers to Europe.

* Front month January was trading at a premium to March LRC-1=R of about $240 a tonne, indicating tightness in short-term supplies.

* Dealers noted the open interest on January had been falling sharply recently, with little appetite to deliver coffee against the contract which expires on Jan. 25.

* March arabica coffee KCc1 fell 0.8% to $1.8870 per lb.

* Dealers said rains in Brazil had eased concerns about dryness in some coffee-growing areas.

SUGAR

* March raw sugar SBc1 rose 1.4% to 21.20 cents per lb as the market continued to be underpinned by poor crops in both India and Thailand.

* Indian mills' sugar production between Oct. 1 and Dec. 31 was down 7.6% from a year earlier, a leading industry body said.

* Strong production in Centre-South Brazil, however, helped to keep a lid on prices.

* March white sugar LSUc1 was up 0.7% at $609.50 per metric ton.

COCOA

* March London cocoa LCCc1 fell 0.3% to ​3,562 pounds a ton, erasing some of the prior session's gains of nearly 2%.

* Dealers said poor main crops in West Africa this season had tightened global supplies.

* March New York cocoa CCc1 fell 0.3% to $4,263 a ton.

* Cocoa farmers in Ivory Coast cited good prospects for the April-to-September mid crop despite very little rainfall across all cocoa regions.

(Reporting by Nigel Hunt; Editing by Jan Harvey)

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