Onome Amuge
Arabica coffee futures on the Intercontinental Exchange (ICE) rose on Thursday, buoyed by expectations of tightening supplies over the next few months as Brazil, the world’s leading producer experiences an off-year harvest cycle of the biennial crop.
May arabica coffee was up 1.25 cents (1 per cent) to $1.28 per Ib while May robusta coffee gained $10 (0.75 per cent) at $1,339 a tonne.
Sugar dealers explained that the market continued to derive support from expectations of a smaller arabica crop this year while the outlook for demand remains uncertain as the persistent covid-19 pandemic continues to quell out-of-home consumption.
Similarly, sugar prices rose, underpinned by adverse weather in several producing countries, especially France, where freezing temperatures reportedly caused severe damage to newly planted sugar beet, further quelling prospects of an ample supply.
May raw sugar was up 0.04 cents (0.3 per cent) at 15.18 cents per Ib while May white sugar climbed by $1.10 (0.3 per cent) to $425 a tonne.
On the other hand, cocoa prices slipped as weak demand reduced the appetite for supplies, dealers said.
May London cocoa shed 33 pounds (1.95 per cent) to 1,660 pounds a tonne while May New York cocoa lost $38 (1.6 per cent) to $2,351 a tonne, both weighed partly by concerns about short-term tightness in tenderable supplies.
The first quarter grind data for Europe, to be issued next week, is expected to provide another indication to the extent to which cocoa demand has fallen so far in 2021 as a result of the covid-19 pandemic.
