Updates with closing prices, comments from traders and analysts
SAO PAULO/LONDON, Nov 11 (Reuters) – Robusta coffee futures hit the highest prices in 10 years and arabica coffee touched a 1-month high on ICE on Thursday as positive fundamentals, a stronger Brazilian currency and high inflation indicators led to increased fund buying.
COFFEE
* January robusta coffee LRCc2 settled up $77, or 3.5%, at $2,292 a tonne. The contract hit $2,300 per tonne during the session, the highest price since Sept. 2, 2011.
* Unfavourable weather conditions are causing harvest delays in top robusta producer Vietnam.
* March arabica coffee KCc2 closed up 6.6 cents, or 3.2%, at $2.133 per lb, the highest in a month, boosted partly by a strengthening in the currency of top producer Brazil.
* A stronger real BRL= deters farmers and exporters from selling dollar-denominated arabica coffee by lowering returns in local currency terms.
* “Today KC (arabica) received strong buying with support from rapid firming of the BRL and may have finally broken out of the 200-210 range,” said Ryan Delany, chief analyst at Coffee Trading Academy, LLC.
* “Two days ago the arabica market rejected an attempt to breakout lower and since then the bulls have been emboldened by support in the firmer BRL and seem to have used the opportunity to try and push KC higher,” he said.
SUGAR
* March raw sugar SBc1 rose 2.7% to 20.12 cents per lb, the highest in a month.
* India’s plans to blend 20% ethanol with petrol from April 2023 will help cut sugar export subsidies, Oil Secretary Tarun Kapoor said on Thursday.
* Dealers said there is eventually likely to be a shift towards using more cane to make ethanol in India that would curb sugar production, although little impact is anticipated in the short term.
* Brokers also cited strong buying from financial players, linked to higher inflation indicators.
* December white sugar LSUc1, which expires next Monday, rose 3% to $522.80 a tonne.
COCOA
* March New York cocoa CCc2 settled up $23, or 0.9%, to $2,537 a tonne.
* Dealers said a pick-up in demand should contribute to a more balanced market in the current 2021/22 season after a significant global surplus in 2020/21.
* March London cocoa LCCc2 rose 17 pounds, or 1.0%, to 1,719 pounds per tonne.
(Reporting by Marcelo Teixeira and Nigel Hunt; editing by Andrei Khalip and Barbara Lewis)
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