SOFTS-Robusta coffee edges up on short-term supply tightness

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SOFTS-Robusta coffee edges up on short-term supply tightness


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 0.3% to $2,351 a tonne by 1206 GMT. The benchmark second position climbed to a 10-year high of $2,381 last week.

* Dealers said supply chain issues, which included 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 released on

Wednesday showed.

* Valid ICE robusta stocks stood at 99,020 tonnes, as of Tuesday, down from 106,920 tonnes a month earlier.

* Dealers noted 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 trading around $117 a tonne on Wednesday.

* No coffee was delivered on the January contract’s first tender day on Tuesday.

* March arabica coffee KCc1 rose 0.4% to $2.2645 per lb.

COCOA

* March London cocoa LCCc1 rose 0.2% to 1,685 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 rain.

* March New York cocoa CCc1 was down 0.3% at $2,477 a tonne.

SUGAR

* March raw sugar SBc1 was 0.1% higher at 18.98 cents per lb.

* March white sugar LSUc1 rose 0.2% to $504.20 a tonne.

(Reporting by Nigel Hunt; Editing by Bernadette Baum)

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