SOFTS-Robusta coffee heads higher after arabica hits 10-year peak

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SOFTS-Robusta coffee heads higher after arabica hits 10-year peak


Updates prices

LONDON, Nov 25 (Reuters)London robusta coffee futures on ICE rose on Thursday – a day after New York arabica touched 10-year highs – as supply snags in top robusta producer Vietnam persisted.

U.S. markets were closed for the Thanksgiving holiday.

COFFEE

* January robusta coffee LRCc1 rose 0.7% to $2,297 a tonne by 1120 GMT.

* Fresh coffee beans from Vietnam’s 2021/22 (Oct-Sept) harvest have yet to arrive because rains in key growing areas and a cherry picker shortage have disrupted bean processing, traders said.

* Looking further ahead, dealers cited a U.S. Department of Agriculture report that forecast a rise in Vietnam green coffee exports to 22.9 million bags in 2021/22, up 4.5% year on year.

* March arabica coffee KCc2 closed 1.4% up at $2.4540 per lb on Wednesday after peaking at $2.4755, its highest since October 2011.

* Arabica remains plagued by worries over container shipping backlogs in top producer Brazil, fears over farmer delivery defaults and falling ICE certified stocks. KC-TOT-TOT.

SUGAR

* March white sugar LSUc1 edged up 0.4% to $513.10 a tonne.

* Dealers said the market has slipped back into range-trading and will be quiet until early next week.

* March raw sugar SBc1 closed 0.9% down on at 19.93 cents per lb on Wednesday.

* Citi has upgraded its average sugar price forecast for 2022 from 19.5 cents to 20.3 cents, citing persistent market tightness through the 2022/23 season, the La Nina weather phenomenon hitting Brazil’s output and low Indian exports.

COCOA

* March London cocoa LCCc2 slipped 0.2% to 1,715 pounds, having hit a one-month high of 1,758 pounds on Tuesday.

* Top producers Ivory Coast and Ghana are reportedly selling at these price levels, with above-average rains in the two countries reducing worries about falling output this season.

* Citi expects a global cocoa deficit of 75,000-100,000 tonnes in 2021/22 but said the market is still working off the 300,000 tonnes surplus from 2020/21.

* March New York cocoa CCc2 closed 2.1% down at $2,512 a tonne on Wednesday.

(Reporting by Maytaal Angel Editing by David Goodman)

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