Robusta coffee hits 2-year high , sugar lower
ICE robusta coffee futures hit a two-year peak on Tuesday as concerns of a delayed harvest due to start next month in top producer Vietnam reinforced worries of a global deficit.
January robusta coffee rose $9 or 0.4 percent to $2,170 per tonne at 1141 GMT. It earlier peaked at $2,171, the highest the second month contract since October 2014.
Dealers said an overall negative crop outlook from top coffee producers and the prospect of a delayed Vietnamese crop owing to rains made warnings of a deficit more pronounced.
The International Coffee Organization has predicted a global deficit of 3.3 million 60 kg bags for 2015/16.
“The market is increasingly concerned with a rather negative outlook for Vietnam, especially as it is the biggest robusta producer,” said Michaela Kuhl, analyst at Commerzbank.
“And now there is some extraordinary rain in certain areas, so everybody’s afraid that the crop might come in late or might be harmed in the last stages of development.”
Rain in Vietnam’s coffee belt is seen delaying cherry ripening and slowing the harvest, and some farmers could miss out on the recent price rally, traders said.
December arabica coffee was up 2.05 cents or 1.3 percent to $1.5995 per lb, after rising to its highest level in over a month, at $1.6025 per lb.
Sugar futures turned lower after a sharp rally in the previous session.
March raw sugar was 0.05 cent or 0.2 percent lower at 23.15 cents per lb.
December white sugar was off $1.50 or 0.3 percent at $604.00 per tonne.
Cocoa futures were higher. December New York cocoa rose $4 or 0.1 percent to $2,709 per tonne.
Regular rain mixed with sun in most of Ivory Coast’s main cocoa-growing regions will help produce a longer and larger main October-March crop than last year, farmers said on Monday, despite lingering damage due to disease.