SOFTS-Coffee, sugar rise on nagging Brazil drought fears

miércoles 5 de marzo de 2014 08:10 GYT

* Analyst sees risks of selloff in arabicas to take profits

* Broker voices concern cane damaged due to Brazil drought

* Cocoa moves sideways, underpinned by firm demand (Adds trade comment, updates prices)

By David Brough

LONDON, March 5 (Reuters) - Arabica coffee futures on ICE rose on Wednesday and raw sugar gained, both due to nagging worries over damage to crops in top grower Brazil.

Arabica coffee futures rose on fears that prolonged dry weather in Brazil had done substantial damage to crops to be harvested in 2014/15.

"When we look at Brazil in the next harvest year (2014/15), we could be in a higher price structure," said Edward Bell, a senior commodities analyst at the Economist Intelligence Unit (EIU)

ICE second-month arabica futures were up 1.3 cents or 0.7 percent at $1.8675 per lb as of 1123 GMT.

"There is ample opportunity now for investors to take some profit, and that would take some upward volatility out of the coffee market," Bell said.   Continuación...