SOFTS-Robusta coffee starts 2024 with gains as supply concerns persist

Credit: REUTERS/Jose Roberto Gomes

Updates prices

LONDON, Jan 2 (Reuters) - Robusta coffee futures on ICE began 2024 in positive territory, extending last year's strong run as supply concerns persist.

Arabica coffee and sugar also gained, having registered steep losses on the last trading day of 2023.

COFFEE

* March robusta coffee LRCc2 rose 0.3% to $2,849 a metric ton by 1447 GMT, having climbed by 58% last year thanks to a decline in exports from top producer Vietnam and strong demand from roasters.

* Dealers said farmers in Vietnam are seemingly unperturbed by current prices close to record highs and have adopted a reserved approach to selling in the hope of further gains.

* March arabica coffee KCc1 rose 1.4% to $1.9070 per lb​​, recovering from falls of 4.9% last Friday.

* Arabica gained 12.6% overall last year, but a favourable outlook for the next crop in top grower Brazil is now limiting the upside.

* Arabica coffee speculators cut their net long position by 1,666 contracts to 22,138 in the week to Dec. 26, data showed.

SUGAR

* March raw sugar SBc1 ​​rose 3.8% to 21.37 cents per lb, having settled 5.4% down last Friday.

* Raw sugar registered an annual gain of 3% last year, with poor crops in India and Thailand largely offset by strong production in Centre-South Brazil.

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

* Egypt's state grains buyer is seeking 50,000 metric tons of raw cane sugar and/or 50,000 tons of white sugar in a tender, it said in a statement.

* March white sugar LSUc1 ​​rose 2.9% to $613.20 a ton.

COCOA

* March London cocoa LCCc1 rose 1.3% to 3,549 pounds per ton after touching its lowest in nearly two months at 3,498 pounds.

* London cocoa gained 70% last year against a backdrop of tight supplies, though speculators are becoming less bullish.

* London cocoa speculators cut their net long position by 650 lots to 59,701 lots as of Dec. 26, data showed.

* March New York cocoa CCc1 ​​rose 1.3% to $4,252 a ton.

(Reporting by Maytaal Angel Editing by David Goodman and David Evans)

((maytaal.angel@thomsonreuters.com; twitter @ReutersAngelM))

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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