LONDON, Dec 10 (Reuters) – Arabica coffee futures on ICE were lower on Friday, extending the market’s pullback from a 10-year high set earlier this week, weighed partly by a strong dollar.
COFFEE
* March arabica coffee KCc2 had fallen 1.5% to $2.3660 per lb by 1245 GMT. Prices had risen on Tuesday to a 10-year high of $2.5235.
* Dealers said the arabica market remained underpinned, however, by supply tightness following a drop in exports from Colombia and bottlenecks in top producer Brazil which have disrupted shipments.
* March robusta coffee LRCc2 fell 0.95% to $2,284 a tonne, hovering just below a 10-year high of $2,334 set on Tuesday.
* Dealers said the robusta market remained focussed on the harvest in top robusta producer Vietnam which has been delayed by heavy rains.
COCOA
* March London cocoa LCCc2 fell 0.95% to 1,661 pounds a tonne.
* Dealers said the new coronavirus variant has led to some concerns about whether demand would continue to recover although there remained some optimism about the outlook for prices.
* “We think the growth in demand will outpace that of supply,” Fitch Solutions said in a note, forecasting an average price of 1,775 pounds in 2022.
* March New York cocoa CCc2 was down 0.2% at $2,445 a tonne.
SUGAR
* March raw sugar SBc1 rose 0.05% to 19.70 cents per lb.
* Commonwealth Bank of Australia analyst Tobin Gorey said mills in Brazil, some of which can switch between using cane to make biofuel ethanol or sugar, had hedged a smaller proportion of production than at the same stage a year ago.
* “The lower hedge level is in part a sign that Brazil’s mills are reluctant to commit to sugar over ethanol yet,” he said in a market update.
* March white sugar LSUc1 rose 0.04% to $510.90 a tonne.
(Reporting by Nigel Huntl Editing by Kirsten Donovan)
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