Adds comment, updates prices
LONDON, Dec 29 (Reuters) – Robusta coffee futures were higher on Wednesday, edging up towards last week’s 10-year high as supply chain issues increased the appetite for exchange stocks.
COFFEE
* March robusta coffee LRCc2 rose 0.4% to $2,353 a tonne by 1421 GMT. The benchmark second position reached a 10-year high of $2,381 last week.
* Dealers said that supply chain issues, including a shortage of container shipping capacity, had slowed the flow of robusta coffee from top producer Vietnam.
* Vietnam’s coffee exports in 2021 are expected to show a drop of 2.7% to 1.5 million tonnes, government data showed on Wednesday.
* Valid ICE robusta stocks stood at 99,020 tonnes, as of Tuesday, down from 106,920 tonnes a month earlier.
* Dealers noted that January’s premium to March LRC-1=R had been widening as traders holding short positions in the front month opted to cover rather than tender coffee. It was around $118 a tonne on Wednesday.
* No coffee was delivered on the January contract’s first tender day on Tuesday.
* March arabica coffee KCc1 rose 0.2% to $2.26 per lb.
* Dealers noted continuing rains in Brazil’s coffee belt, boosting cherry growth and helping to improve soil moisture after a drought this year.
COCOA
* March London cocoa LCCc1 rose 0.1% to 1,683 pounds a tonne.
* Dealers said the weather in top producer Ivory Coast had been generally favourable for the development of the mid-crop, with above-average rainfall.
* March New York cocoa CCc1 was little changed, easing by 0.04% to $2,484 a tonne.
SUGAR
* March raw sugar SBc1 was 0.6% down at 18.85 cents per lb.
* March white sugar LSUc1 fell 0.6% to $495.40 a tonne.
(Reporting by Nigel Hunt Editing by Bernadette Baum and David Goodman )
((nigel.hunt@thomsonreuters.com; +44 (0) 7990 561421; Reuters Messaging: nigel.hunt.thomsonreuters.com@reuters.net ))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com