April 4, 2019 / 12:38 PM / 6 months ago

SOFTS-Arabica coffee extends rebound, sugar also rises

LONDON, April 4 (Reuters) - Arabica coffee futures on ICE rose on Thursday, extending its rebound from a 13-year low set earlier this week, while raw sugar prices also advanced.


* May arabica coffee was up 1.30 cents, or 1.4 percent, at 96.65 cents per lb by 1228 GMT, climbing further away from a 13-year low of 91.25 cents set on Tuesday.

* Dealers said the rebound was driven by short covering and a stronger Brazilian real, which makes dollar-denominated prices less attractive in local currency terms and may slow the flow of coffee from the world’s top grower.

* They noted, however, that the market remained oversupplied following a huge crop in Brazil last year, while prospects for this year’s crop remain favourable.

* “For the price really to recover in any lasting fashion there would need to be clear signs that less supply is available not only temporarily and as a result of exchange rates. Yet there is no evidence that this is the case just now,” Commerzbank said in a market note.

* The International Coffee Organization on Thursday raised its estimates for the size of global coffee surpluses for both the 2017/18 and 2018/19 seasons.

* May robusta coffee was up $2, or 0.1 percent at $1,459 a tonne.

* Domestic coffee prices in Vietnam bounced back on Thursday, tracking a recovery in London, after hitting their lowest in three years earlier this week, while the Indonesian premium expanded from last week.


* May raw sugar rose 0.22 cents, or 1.8 percent, to 12.64 cents per lb, boosted partly by further gains in the crude oil market.

* Brazilian centre-south sugar mills hedged through New York futures contracts 11.9 million tonnes of the raw sugar they will produce in the 2019/20 season by the end of January, sugar consultancy Archer said on Wednesday.

* “The weakness of the Real has prompted millers to increase their level of cover to a higher percentage than usual in CS Brazil, but this is more than offset by talk that Thai millers are well behind on their pricing this year,” Sucden Financial senior trader Nick Penney said.

“If we add the prospects of Indian exports throughout the campaign given increasing production there, it would seem that the market is still very much capped,” he added.

* May white sugar was up $3.30, or 1.0 percent, at $330.50 a tonne.


* May London cocoa rose 5 pounds, or 0.3 percent, to 1,785 pounds a tonne.

* May New York cocoa was up $1, or 0.04 percent, at $2,378 a tonne. (Reporting by Nigel Hunt; Editing by Mark Potter)

Nuestros Estándares:Los principios Thomson Reuters
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below