The futures contracts coffee arabica on ICE rose on Tuesday, driven in part by the slow pace of sales from producers in the Brazil and on Colombiawhile robusta prices also rose as rains in Vietnam led to concerns about crop quality.
Coffee
March arabica closed up 0.9 cents, or 0.6%, at $1.635 a pound.
Dealers said a strengthening of the Brazilian real against the dollar could further discourage producer sales in the world’s largest producer, lowering dollar-denominated prices in local currency terms.
THE Colombia produced 1.06 million 60-kilogram bags of washed arabica coffee in November, down 6% from the same month last year due to heavy rains.
January Robusta coffee rose $17, or 0.9%, to $1,916 a tonne.
Traders said the harvest in main Robusta producer Vietnam was now around 60% complete, with some quality concerns after recent rains.
Sugar
O sugar March crude fell 0.16 cents, or 0.8%, to 19.39 cents a pound, as oil prices fell and Petrobras cut gasoline prices.
Falling energy prices have reduced the incentive for Brazilian mills to produce ethanol, leading to higher sugar production.
Traders noted that recent rains in south-central Brazil, however, have disrupted the cane harvest, while there has also been a slow start to the harvest in Thailand.
White sugar for March fell $4.20, or 0.8%, to $534.90 a tonne.
Source: Moneytimes
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