SOFTS-Robusta coffee steadies in wake of arabica rally

  • Reuters
  • Commodities News
SOFTS-Robusta coffee steadies in wake of arabica rally
Credit: © Reuters.

(Adds settlement prices)

LONDON, Feb 17 (Reuters) - ICE (NYSE: ICE ) robusta coffee steadied on Monday in quiet trading because of a U.S. public holiday, with prices underpinned by last week's 10% surge in arabica. London cocoa rose and white sugar slipped.

COFFEE

* May robusta LRCc2 settled flat at $1,314 a tonne, having set a 3-1/2 month low of $1,277 last week.

* May arabica KCc2 had settled up more than 4% on Friday at $1.1135 cents per lb, clocking gains of more than 10% on the week. U.S. markets were closed on Monday for a public holiday.

* "Differentials (for physical coffee) have firmed incredibly; the market was ultimately too low. If we see a dollar anytime soon I'd be surprised because roasters will continue to buy if the price goes back to the lows," one dealer said.

* He added, however, that the situation for robusta was less rosy because top producer Vietnam still had a lot of selling to do.

* ICE arabica speculators increased their net short position by 12,534 contracts to 14,632 in the week to Feb. 11. May white sugar LSUc1 settled down $2.70, or 0.7%, at $409.50 a tonne.

* A total of 463,350 tonnes of white sugar was tendered against the March white sugar contract, which expired on Friday, data from ICE Futures Europe showed. March raw sugar SBc1 ​​settled 0.7% down at 15.06 cents per lb​ on Friday, having hit a 2-1/2 year high of 15.90 cents last Wednesday before losing some ground.

* A Marex Spectron report said that raw sugar is likely to have shot up above ethanol parity last week, tempting Brazilian cane mills to produce more sugar at the expense of ethanol. Cane is a feedstock for both products.

* Brazilian sugar and energy company Cosan SA CSAN3.SA expects higher sugar production in Brazil in 2020-21 because of improved sugar prices in New York and a weaker Brazilian currency. ICE sugar speculators raised their net long position by 13,972 contracts to 91,609 in the week to Feb. 11. May London cocoa LCCc2 settled up 15 pounds, or 0.75%, at 2,017 pounds a tonne, edging back towards last week's three-year high of 2,074 pounds.

* Cocoa arrivals at ports in Ivory Coast reached 1.474 million tonnes between Oct. 1 and Feb. 16, exporters estimated, down 0.1% from the same period last season. Cocoa traders remain concerned over dry weather and stock hoarding in top producer Ivory Coast. Ample rainfall last week in some of Ivory Coast's cocoa-growing regions brought welcome relief after a dry spell that had threatened to deplete the mid-crop, farmers said. May New York cocoa CCc2 settled 0.3% down at $2,886 a tonne on Friday.

* ICE cocoa speculators raised their net long position by 8,332 contracts to 42,628 in the week to Feb. 11. by David Evans/David Goodman/Jane Merriman)

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