Adds comment, updates prices
LONDON, Nov 23 (Reuters) – Arabica coffee futures on ICE climbed to the highest level in nearly 10 years on Tuesday, boosted by supply tightness, while sugar prices also rose.
COFFEE
* March arabica coffee KCc2 rose 2.5% to $2.3710 per lb by 1456 GMT after peaking at $2.3990 – its highest since January 2012.
* Rabobank said worries about logistical issues has spurred panic buying across the market.
* Dealers said roasters are rushing to buy, having collectively given up on the hope that prices will fall.
* They also noted nearby coffee futures are moving to a premium versus those further out, indicating supply tightness.
* Certified stocks continue to fall in both arabica and robusta KC-TOT-TOT.
* January robusta coffee LRCc2 rose 0.8% to $2,270 a tonne.
SUGAR
* March raw sugar SBc1 rose 0.7% to 19.89 cents per lb.
* Dealers said they were keeping a close watch on the potential for the La Nina weather phenomenon to lead to another poor sugarcane crop in Brazil next year.
* Australia’s weather bureau said on Tuesday a La Nina weather phenomenon had developed in the Pacific Ocean for the second year in a row.
* La Nina can lead to drier-than-normal weather in southern Brazil, a region which suffered from drought this year.
* Brazil’s government on Tuesday reduced by nearly 10% its projection for this season’s sugar production in the centre-south region to 30.7 million tonnes after an evaluation of the impact of drought and frost on crops.
* March white sugar LSUc1 rose 0.6% to $511.20 a tonne.
COCOA
* March London cocoa LCCc2 rose 0.4% to 1,747 pounds a tonne, having hit a one month high of 1,758 pounds, boosted partly by the weakness of sterling against the dollar. GBP/
* March New York cocoa CCc2 fell 0.8% to $2,568 a tonne.
(Reporting by Maytaal Angel and Nigel Hunt; Editing by David Evans and Shounak Dasgupta)
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