Recasts, updates prices
LONDON, Nov 19 (Reuters) – Arabica coffee futures on ICE traded near their highest in almost 10 years on Friday in response to tightening supplies in leading producers and worries about adverse weather.
Sugar was little changed and cocoa headed lower.
COFFEE
* March arabica coffee KCc2 rose 3.7% to $2.3755 per pound at 1523 GMT, after reaching $2.3955, the highest since January 2012.
* “Coffee prices have (reached) new multi-year highs on the back of poor supply outlooks in Brazil and Colombia (and) expectations La Niña could cause further crop issues,” said Fitch Solutions in a note.
* The market’s recent strong performance has also fuelled technically driven buying.
* January robusta coffee LRCc2 rose 1.8% to $2,251 a tonne.
* Erratic weather has slowed bean ripening in top robusta producer Vietnam.
SUGAR
* March raw sugar SBc1 fell 0.4% to 20.11 cents per lb, after peaking at 20.69 cents on Thursday, the highest level since February 2017.
* “Sugar prices have risen further as reduced sugarcane supply in Brazil has been further compounded by increased cane diversion to ethanol, while global demand for sugar trends upwards,” Fitch Solutions said.
* Thailand’s sugarcane production is expected to rise by nearly a third this season, bouncing back from decade-low levels hit last year due to drought.
* The International Sugar Organization on Thursday forecast a global sugar deficit of 2.55 million tonnes in the 2021/22 season versus a previous 2021/22 forecast of 3.85 million, citing a diminished outlook for consumption.
* March white sugar LSUc1 fell 0.3% to $515 a tonne.
COCOA
* March London cocoa LCCc2 fell 0.4% to 1,718 pounds a tonne.
* “We expect (cocoa) prices to rise from spot (levels) over the coming months as grindings recover. We are bearish in softs in 2022, with the exception of cocoa for which the continued demand recovery will send prices higher,” said Fitch Solutions.
* March New York cocoa CCc2 fell 0.5% to $2,579 a tonne.
(Reporting by Maytaal Angel; Editing by Steve Orlofsky and Barbara Lewis)
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