NEW YORK/LONDON — Arabica coffee futures on ICE rose on Tuesday as the market extended its rebound from last week’s 16-month low while raw sugar prices eased.
* March arabica coffee settled up 4.3 cents, or 2.7%, at $1.647 per lb after falling last week to a 16-month low of $1.5405.
* Dealers said the fund selling that had helped to fuel the recent decline in prices appeared to have dried up, at least temporarily, while reports that Brazil’s crop next year may be smaller than previously expected also contributed to the rise in prices this week.
* The continued inflow of arabica coffee into ICE-approved warehouses, however, helped to keep a lid on prices.
* ICE certified coffee stocks increased to 530,105 bags on Nov. 22, well above a 23-year low of 382,695 bags set on Nov. 3, as 16,916 bags were approved by ICE grading officials to be added to the stocks on Tuesday. There were still 543,512 bags pending grading.
* January robusta coffee rose $22, or 1.2%, at $1,834 a tonne.
* March raw sugar settled down 0.12 cent, or 0.6%, at 19.74 cents per lb with the market consolidating well below last week’s seven-month peak of 20.48 cents.
* Commerzbank wrote in a note that more sugarcane in Brazil was being channeled into sugar production as the use of corn to produce ethanol increased in the country.
* “Furthermore, there is considerable uncertainty surrounding ethanol prices, which could be pushed by state intervention to levels below the costs of production, which would likewise favor a shift in sugar cane processing towards sugar,” the bank added.
* March white sugar rose $1.40, or 0.3%, to $537.30 a tonne.
* Europe’s largest sugar producer Suedzucker is set to bump up sugar prices again next year as energy costs remain high and as input costs for items like sugarbeet are also elevated, chief executive Niels Poerksen told Reuters.
* March London cocoa settled down 14 pounds, or 0.7%, to 1,965 pounds per tonne, partly owing to the strength of sterling.
* March New York cocoa rose $2, or 0.1%, to $2,455 a tonne. (Reporting by Marcelo Teixeira and Nigel Hunt; Editing by David Goodman, Jonathan Oatis and Krishna Chandra Eluri)