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Category: Forex News, News

Arabica coffee hits 13-year high, raw sugar at 7-month peak

By Published On: September 25, 20241.7 min readViews: 1910 Comments on Arabica coffee hits 13-year high, raw sugar at 7-month peak
SOFTS-Arabica coffee hits 13-year high, raw sugar at 7-month peak

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NEW YORK, Sept 24 (Reuters)Arabica coffee futures on ICE rose to a 13-year high on Tuesday as worries over the crop in top producer Brazil persisted, compounded by fears there will not be enough rains in the country in the weeks ahead.

Raw sugar futures also gained, hitting a seven-month peak.

COFFEE

* December arabica coffee KCc1 settled up 4.15 cents, or 1.6%, at $2.678 per lb​, having hit the highest since September 2011 at ​$2.7040.

* Dealers said rains this past weekend in Brazil’s coffee growing regions might be enough to stimulate the first crop flowering, but follow-up rains will be needed to help fix the flowers into cherries.

* “This is where things get tricky,” said one dealer, noting the 11-15 day forecast has trended drier.

* Capping gains in coffee prices though were reports that the EU Deforestation Regulation banning the import of commodities linked to deforestation could be delayed, dealers said.

* The regulation is due to come into effect at the end of December, and has been boosting coffee imports into the bloc for much of this year.

* November robusta coffee LRCc2 rose 0.7% at $5,312 a metric ton.

SUGAR

* October raw sugar SBc1 ​​settled up 0.57 cent, or 2.5%, at 23.12 cents per lb, having hit a seven-month high of 23.30 cents.

* Dealers said the market continues to be supported by downgrades to projections for sugar output in top producer Brazil both this year and next due to the drought and related fires.

* A survey by S&P Global Commodity Insights expects sugar production in Brazil’s centre-south to have fallen 1.3% in the first half of September from last year. Industry group Unica is expected to release the data in coming days.

* December white sugar LSUc1 ​​rose 1.9% at $595.40 a ton.

COCOA

* December New York cocoa CCc1 ​​​settled up $81, or 1%, to $7,867 a ton.

* March London cocoa LCCc2 ​fell 0.7% to 4,526 pounds per ton.

Reporting by Maytaal Angel and Marcelo Teixeira; Editing by Emelia Sithole-Matarise and Daniel Wallis


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