LONDON, Nov 22 (Reuters) – Arabica coffee futures on ICE were consolidating just below its highest in almost 10 years on Monday as the market remained underpinned by tightening supplies while sugar prices eased.
COFFEE
* March arabica coffee KCc2 rose 0.2% to $2.3385 per lb by 1339 GMT. The market climbed to $2.3955 on Friday for its highest in nearly 10 years.
* Dealers said the mood remained bullish, with exchange stocks falling and producers in Brazil reluctant to sell, while a shortage of container shipping availability is slowing shipments from South America and exchange stocks continue to fall.
* Despite good prices, sales of the next coffee harvest in Brazil have advanced little over the past month, owing to production uncertainties and expectations that prices will move still higher, the Safras & Mercado consultancy said on Friday.
“It is perfectly conceivable that the upswing in coffee prices will continue,” Commerzbank said in a report, also noting that the La Nina weather phenomenon could cause further problems for next year’s crop in Brazil.
* January robusta coffee LRCc2 fell 0.1% to $2,242 a tonne.
SUGAR
* March raw sugar SBc1 lost 1.2% to 19.75 cents per lb, extending the market’s retreat from a 4-1/2 year high of 20.69 cents set last week.
* Dealers said the market’s recent run-up appeared to have lost momentum, curbed by concerns that high prices could stimulate more exports from India.
* Weaker crude oil prices and a firmer dollar also weighed on prices. O/R
* March white sugar LSUc1 fell 1.2% to $506.50 a tonne.
COCOA
* March London cocoa LCCc2 rose 0.2% to 1,726 pounds a tonne.
* Dealers said supplies remained ample, limiting the market’s upside potential.
* “Even though grindings increased year on year in Europe, North America and Southeast Asia for the third quarter of 2021, this was not sufficient to absorb excess production,” the International Cocoa Organization said in a report on Monday.
* March New York cocoa CCc2 was down 0.2% at $2,577 a tonne.
(Reporting by Nigel Hunt Editing by David Goodman)
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