Updates with closing costs, provides feedback
LONDON, July 22 (Reuters) – Arabica espresso futures on ICE closed 10% as much as hit their highest in 6-1/2 years on Thursday as commerce homes thought-about doubling their estimates of the harm to subsequent yr’s crop in high producer Brazil from this week’s frost.L8N2OY6FS
COFFEE
* September arabica espresso KCc1 settled up 17.65 cents, or 10%, at $1.9365 per lb, having hit its highest since November 2014 at $1.95 earlier within the session. The contract has gained almost 20% this week.
* Commerce homes are scrambling to evaluate the harm to Brazil’s espresso crop from Tuesday’s frosts, with earlier bets on 1-2 million baggage of losses for subsequent season wanting more and more optimistic, mentioned a supply at a world agricultural commodities dealer.
* “I feel the figures are going to be near double (that),” he mentioned. “There will be points right here if you happen to (purchased espresso futures) at $1.20-$1.30, points with (supply) defaults, it is beginning to be whispered,” he added.
* The frosts hit Brazil’s primary coffee-growing area of Minas Gerais and Sao Paulo on Tuesday, with some farmers anticipating they should take out their bushes and replant. L8N2OX5N0
* Espresso bushes are extraordinarily delicate to frost, which kills the leaves, forcing the plant to regrow them the following season, whereas extreme frosts can kill the tree utterly.
* September robusta espresso LRCc2settled up $110, or 6.2%, at $1,889 a tonne.
SUGAR
* October uncooked sugar SBc1settled down 0.05 cent, or 0.3%, at 17.62 cents per lb, having closed up 1.5% on Wednesday.
* Whereas frosts additionally hit some sugar cane areas in Brazil, a high sugar producer, they’re thought to have had a minimal influence on the cane because the affected areas had already been harvested.
* Nonetheless sellers mentioned until macro financial elements flip decidedly destructive, sugar is biased to the upside as Brazil manufacturing estimates will probably be lowered within the coming weeks because of an earlier frost and drought.
* “At the moment the bias is impartial. However we consider the chances are rising for a transfer larger,” mentioned a U.S.-based dealer.
* October white sugar LSUc1settled down $3.40, or 0.8%, at $447.00 a tonne.
COCOA
* September London cocoa LCCc1settled up 9 kilos, or 0.6%, to 1,579 kilos per tonne, having hit its lowest in a yr final week.
* September New York cocoa CCc1closed up $52, or 2.3%, to $2,317 a tonne.
(Reporting by Marcelo Teixeira and Maytaal Angel; Enhancing by Mark Potter, David Goodman and Diane Craft)
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