SOFTS-Coffee at 2-year high on Brazil drought fears, cocoa rises

martes 11 de marzo de 2014 09:21 GYT

* Analysts see damage to Brazil coffee due to drought

* Cocoa underpinned by expected global deficit in 2013/14

* Sugar prices capped by ample supplies

By David Brough

LONDON, March 11 (Reuters) - Arabica coffee futures rose over 2 percent on Tuesday to hit a two-year high and sugar hovered near a four-month peak on concerns over a drought in top grower Brazil.

Cocoa gained to a 2-1/2-year high on technically-driven buying, underpinned by expectations of a global deficit and strong demand.

May arabica coffee futures on ICE were 4.7 cents, or 2.3 percent, higher at $2.0810 per lb as of 1259 GMT after peaking at $2.0890, a two-year high.

The cost of arabica beans has surged around 85 percent since the start of the year, boosted by concerns that dry weather in top grower Brazil would cut the size of the 2014/15 crop and could also curtail production in 2015/16.

"It is certain that some damage has been done which is irreversible," Birgit Wippler, coffee analyst with F.O. Licht, said.   Continuación...